The factory of Tata Steel in Scunthorpe, northern England.[Photo/Agencies]

European steel manufacturers, who say 85,000 jobs have been lost in the industry since 2008, failed to persuade the European Union's Competitiveness Council to impose sanctions against China, for what they said was dumping cheap steel onto the open market, the Daily Telegraph reported.

UK and European steelmakers claim China's excess production is being dumped in Europe, depressing the streel price and forcing closure of plants.

Yesterday's meeting of the EU's Competitiveness Council refused to agree to calls from steelmakers to impose sanctions on China, instead saying it would hold discussions with various steelmaking countries and take a "constructive approach" to modernising anti-dumping trade measures, the newspaper said.

The Financial Times, in an editorial, said resorting to widespread protectionism would only displace job losses elsewhere.

Large-scale use of "trade defence measures" risked "inflaming EU-China trade tensions more generally," the FT said.

"In a fiercely competitive global commodity market marked by producer over-capacity, the only kind of government intervention likely to give steelmakers what they want would most probably end up kicking off a major trade war and doing more harm than good," the FT concluded.

To contact the reporter: chris@mail.chinadailyuk.com