UPDATE 1-Don’t politicise steel deal, China urges U.S.

(Adds quotes, background)

BEIJING, July 20 (BestGrowthStock) – China on Tuesday branded a
group of U.S. lawmakers as protectionist for seeking to block an
investment by the country’s fourth-largest steel maker on
national security grounds.

State-owned Anshan Iron & Steel Group, the parent of Angang
Steel Co (0347.HK: ) (000898.SZ: ), has agreed to pay $175 million
for less than a 20 percent stake in a rebar plant that Steel
Development Co, a U.S. start-up, is building in Mississippi.

A bipartisan group of 50 lawmakers called on July 2 for an
investigation, expressing deep concern that the investment
threatened U.S. jobs and national security. [ID:nN02241776]

Yao Jian, a spokesman for the Ministry of Commerce, said
politicising what was a normal commercial deal was tantamount to
protectionism.

“Most U.S. politicians hope China can invest in the U.S. to
create jobs, and the move by a small group of politicians to
investigate and review the deal in the name of ‘national
security’ is inappropriate,” Yao told a regular news conference.

“I hope both U.S. politicians and industry representatives
will not politicise normal commercial projects that promote the
development of bilateral trade,” he added.

U.S. steel companies have complained loudly about unfair
competition from China and have won a number of U.S.
anti-dumping and countervailing duties on Chinese steel goods.

The United States blocks few foreign investments. But last
year, a Chinese mining company backed out of a deal to invest in
a Nevada gold mine after a U.S. government review raised
security concerns. The mine was about 100 km (60 miles) from a
base the U.S. Navy uses to train its pilots.

Stock Market Advice

(Reporting by Zhou Xin and Alan Wheatley; editing by Ken Wills)

UPDATE 1-Don’t politicise steel deal, China urges U.S.