China welcomes a report of the World Trade Organization (WTO) Appellate Body that ruled the US steel safeguard measures are inconsistent with WTO rules, a spokesman of the Chinese Ministry of Commerce said in Beijing Tuesday.

Spokesman Chong Quan said the US safeguard measures have had a negative impact on Chinese steel exports to the United States, and "we welcome the report of the WTO Appellate Body."

China hopes the United States would carry out its responsibility to the international community and withdraw those measures once the WTO dispute settlement body passes the report, Chong said.

As a WTO member, China has exercised its due right in trying to solve the trade dispute with other WTO members through the WTO dispute settlement mechanism and protect the legitimate interests of Chinese enterprises, he said.

The Appellate Body upheld the major findings of a July ruling, which was issued after a complaint from the European Union, China, Japan, the Republic of Korea (ROK), Switzerland, Norway, New Zealand and Brazil.

The co-complainants said in a joint statement that the WTO report "leaves the United States with no other choice but to terminate its WTO incompatible safeguard measures without delay."

The US safeguard measures were imposed on 10 steel product groupings and US President George W. Bush introduced the three-year duties of up to 30 percent in March 2002.

The EU, followed by Japan, ROK, China, Switzerland, Norway, New Zealand and Brazil, launched the WTO dispute settlement procedures against the US steel safeguard measures.

The Appellate Body report must be adopted by the WTO Dispute Settlement Body within 30 days.

(Xinhua News Agency November 12, 2003)