Chinese trade officials are unhappy with new American import duties on steel products made in China. The officials say the stiff duties put on Chinese steel amount to protectionism and that China needs time to address its excess capacity.

Chinese producers of cold-rolled steel will likely face U.S. duties of more than 500 percent. Experts say that means steel produced in China and sold in America will become five times more expensive. A U.S. investigation covered 224 companies, involving about U.S.$500 million. Chinese trade officials protested at a press conference Thursday.

The U.S. has launched 48 trade remedy investigations against Chinese steel makers since 1985. Its most recent round of investigations covered China and such countries as Brazil, India, South Korea and Japan. Chinese officials believe that that goes against the free trade principles established by the World Trade Organization, and will hit China's steel makers hard.

Liu said overcapacity is not a China-specific problem but a global conundrum. He urged countries not to resort to trade protection measures. China accounts for half of the world’s steel output. Steel prices have fallen about a quarter since their April peaks and could weaken more in the second half of the year.