View of the Ministry of Commerce of China in Beijing, China, 15 April 2009. [Photo: Imagine China]

An unnamed official with the Ministry of Commerce has urged Australia to be prudent when using trade remedy measures, saying they are no solution to global steel overcapacity.

The remark came after Australia announced that it would levy anti-dumping taxes, of between 11.7 percent and 30 percent, on screw-thread steel exports from China.

The official expressed the view that trade remedy measures will not work since the overcapacity across the world's steel industry is a result of anemic global economic recovery and tepid demand.

The official has also expressed hopes that Australia will treat Chinese companies fairly and reasonably.