Anti-dumping probes have dealt a severe blow to makers and exporters of seamless steel pipes. That's because they're considered high-end products, and shifting production of such pipes could prove very difficult. Even so, exporters are not giving back.

Seamless steel pipes produced by Tianjin Pipe Group make up one tenth of total output in China. A quarter of what it makes is exported overseas. The group is taking active measures to respond to an anti-dumping investigation launched by the US.

Xu Lizhong, Chief Law Counselor of Tianjin Pipe Group said "Since the US proposed investigations, we, as a leading company in the sector, have sat down with the steel sector association and relevant companies to hold close discussions."

Currently, among 210 domestic seamless steel pipe companies, and several major producers are working together to respond to the US probe. A team sent by US has been carrying out investigations at Tianjin Pipe Group. The company has provided a large amount of data and details about policies to the team.

Xu Lizhong said "They believe that China is not a market economy. They believe that we enjoy subsidies from the country to reduce production costs. They believe that we are dumping because the products we sell are well under cost price. We are a state-owned enterprise. But we run our business according to market forces. Our company has never enjoyed explicit subsidies from the government."

Although the sector lacks sufficient experience and expertise, the best choice for Chinese companies is to be pro-active in response. Zhejiang Kingland Pipeline Group is a successful case in anti-dumping. The group won an anti-dumping suit against Australia in June this year.

Shen Ganrong, General Manager of Zhejiang Kingland Pipeline Group said "Australia has raised four anti-dumping suits. We responded actively each time, and results were fair. If you do not respond, it means you give up the market. In the long run, I think it is worthwhile."

Apart from seamless steel pipes, makers of welded steel pipes have also suffered great losses from exports affected by trade protectionism. From 2003 to 2007, China's welded steel pipe sector has grown rapidly, with the export volume jumping over 7 times. But since the second half year of 2007, exports have dropped sharply affected by trade disputes.