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The United States has prevailed in a trade dispute with China. The World Trade Organization ruled that China "acted inconsistently" with trade rules in imposing anti-dumping duties on American steel products.

Judges agreed with the U.S. that China failed to prove that imports of grain-oriented flat-rolled electrical steel, produced by companies such as West Chester, Ohio-based AK Steel Holding Corp. (AKS) and Pittsburgh-based ATI Allegheny Ludlum Corp. had caused injury to Chinese rivals. The panel also found that China began its anti-subsidy proceedings without adequate evidence showing U.S. companies were receiving illegal government aid.

"China simply has to play by the rules to which it agreed when it joined the World Trade Organization 10 years ago," U.S. Trade Representative Ron Kirk said today on a conference call with reporters.

"This ruling shows that getting tough on trade cheating pays dividends—it will save jobs in America," Scott Paul, executive director of the Alliance for American Manufacturing, said. "Kudos to the Obama administration for enforcing the law and successfully defending the decision at the WTO."

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