This will be the first such hearing after the country adopted a 180-day long safeguard measure on May 20 in line with World Trade Organization rules to protect its steel industry.

Investigation on the damage to China's steel sector will be reviewed at the hearing, a statement from the SETC said.

Individuals, related companies and organizations can apply to participate in the event, including domestic steel producers, import traders, foreign steel makers, steel exporters, foreign government organizations and foreign embassies to China, it said.

"And those participants should register with SETC to apply for the hearing before the end of this month," said Wang Xin, an official with the SETC.

"The hearing will help to outline the real situation in the steel sector," said Zhou Dalin, director of the Anti-Subsidy and Safeguard Measures Division of the Bureau of Fair Trade for Imports and Exports at the Ministry of Foreign Trade and Economic Co-operation.

"We are currently engaged in collecting materials and information," Zhou told China Daily, whose division is in charge of the investigation on the figures of imported steel products and the cause and effect of imported steel products to the domestic steel industry.

SETC is mainly focusing on the investigation of damage brought to the domestic steel sector.

Besides the hearing, Zhou said, other measures will also be adopted to have an in-depth understanding of the steel industry.

He did not elaborate on what they would be.

According to the related WTO rules, the final verdict of the investigation will be made before November 20.

"It's normal practice to hold such a hearing now that China is a WTO member," said Li Yushi, deputy director of the Chinese Academy of International Trade and Co-operation under the Ministry of Foreign Trade and Economic Co-operation.

"And this will help both domestic and foreign steel makers to have more fairness within the sector," he added.

Li went further to point out that the structure and development of China's steel sector is far from satisfactory.

China saw a jump in steel imports and a fall in exports during the first half of this year as a result of its entry into the WTO and trade conflicts between the world's major steel producers.

According to SETC statistics, China imported 11.72 million tons of steel during the first six months, an increase of 37.5 percent over the same period last year.

Steel exports, in contrast, were down 8.2 percent to 2.23 million tons during the first half year, from the same period last year.

Analyst said the ratcheting-up of steel imports is mainly the result of China's tariff cuts and the relaxation of non-tariff measures under its WTO obligations.

China's average steel import tariffs have declined 50 percent since WTO entry in December.

Another SETC official, Zhou Ping, attributed the increase to last-minute steel imports by some traders who attempted to reduce business risks caused by temporary measures China introduced in May.

(China Daily August 16, 2002)