The Runaway Trade Giant

Nucor Chief Executive Daniel R. DiMicco sees a train wreck coming. True, Charlotte (N.C.)-based Nucor Corp., America's top steelmaker, had a banner year in 2005. But China now churns out more steel than the U.S., Japan, and Europe combined in mills that are "massively subsidized" by interest-free loans, an undervalued currency, and export tax breaks, he says. Despite its own voracious demand, moreover, China has become a net steel exporter. And more mills are in the pipeline. "If China decides to export significant amounts of steel," he warns, "there will be no such thing as competition."

DiMicco would love to see the U.S. file a complaint with the World Trade Organization to block a flood of Chinese imports. Trouble is, it's not clear that China's help to steel producers violates WTO rules. Besides, Washington does not want to bring cases it is unlikely to win. How about getting the Feds to file an anti-dumping suit in U.S. court? To succeed, Nucor would have to prove it was already damaged by cheap Chinese imports.