BEIJING, April 19 (Xinhua) -- U.S. allegations about China's industrial policies in steel and shipbuilding sectors are groundless and against common sense of economics, a Chinese spokesperson said on Friday, urging the United States not to turn economic and trade issues into security ones.

The United States has recently threatened to triple the tariff rates for both steel imports and aluminum imports from China. It also blamed the Chinese government's practices in the shipbuilding industry.

Lin Jian, a spokesperson for the foreign ministry, said those comments are far-fetched, and China expresses grave concern and dissatisfaction over those comments.

China's steel sector is mainly aimed at meeting domestic demand and receives no export-oriented subsidies. Only 5 percent of its steel is exported, far lower than Japan, the Republic of Korea and other steelmakers, which means the influence of Chinese steel exports on the international market is very limited, Lin said.

"The U.S., on the other hand, spends hundreds of billions of dollars on discriminatory domestic subsidies and abuses export controls citing 'national security', which hinders normal international trade in chips and other products," he said. "What a double standard for the U.S. to accuse China for 'non-market practices.'"

Citing various U.S. studies, Lin said that the U.S. shipbuilding industry lost its competitive advantage many years ago due to over-protection.

The growth of relevant industries in China is a result of companies' tech innovation and participation in market competition. It also benefits from China's fully-fledged industrial manufacturing system and vast domestic market, he said.

According to a World Trade Organization ruling, the former U.S. administration was wrong to impose additional steel and aluminum tariffs on certain WTO members and launch Section 301 investigation and raise tariffs on China, Lin said.

"Instead of correcting its mistake, the U.S. chose to double down on it by threatening with new tariff hikes and announcing a new Section 301 investigation," he added.

"We urge the U.S. to be prudent in its words and deeds, stop manipulating issues on China in the election year, stop turning economic and trade issues into security ones, lift additional tariffs on China and stop imposing new ones," Lin said, adding that China will take all steps necessary to firmly defend its own rights and interests. Enditem

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