What's behind the decision by the US government and what impact will it have? Chen Tong talked to the experts to find out.

The U.S. Commerce Department has increased anti-subsidy duties to 256.44 percent on imports of cold-rolled flat steel from China, and maintained anti-dumping duties on the same product at 265.79 percent. The new duties sound dramatic, but experts say they should not affect China's steel exports substantially. That's because the volume of Chinese cold-rolled flat steel exported to the US accounts for less than half a percent of China's steel exports.

The Commerce Ministry says, however, that it will  continue to implement a tax rebate policy on steel exports as it tries to finance a costly plan to reduce overcapacity. Media reports say the U.S. government believes that steel producers in China enjoy an average subsidy of 256 percent. That aside however, Zhang considers Washington's decision to be more a strategy to solve domestic employment problems.

The World Steel Association says China produces 50 percent of all steel manufactured worldwide. The Commerce Ministry says it will take action against the U.S. decision at the World Trade Organization. The volume of steel exported from China to the U.S. was 27,700 tons last month. That's a fall of 89 percent year-on-year.