This is big issue in UK at the moment with TATA putting its huge Redcar steel plant up for sale. Basically it cannot compete with cheap chinese steel imports. The rational response to this would be very high tarriffs on chinese imports of steel. In the EU the tarriff is only 15% which is nothing, however in the US its 260%. Therefore the US is effectively protecting its domestic steel industry by shutting out chinese imports. Why is the EU not doing the same, is it because of the high dependance of the German economy on exports to China. Especially why is the UK not willing to impose its own tarriffs is it because of the huge financial services industry. In other words what is the real backround to all this. Also the Chinese have said they will impose their own tarriffs on EU imports to China even though EU tarriffs are tiny compared to US tarriffs. So why do the Chinese feel in such a powerful position and why have they flexed their muscles on this issue.