European Commission in Brussels, Belgium.[photo: news.cn]

The Chinese government is calling on the European Commission to drop a newly-launched anti-subsidy investigation into Chinese steel exports.

Investigations have been re-launched into Chinese hot-rolled steel imports at the request of the European Steel Association.

The industry-lobby alleges the Chinese government is subsidizing China's steel sector, which it claims is under-cutting European steel producers.

Chinese authorities say the new investigation is tantamount to protectionism, as previous anti-dumping and countervailing duties on Chinese steel imports have already been thrown out by the European Court of Justice.

European steel producers claim Chinese companies are dumping their products into the European market as a way to eliminate over-capasity in the Chinese steel sector.

However, the European Court of Justice ruled back in February that there is no evidence to support the claims.