China insists the steel it exports to this country is up to scratch despite claims it's flooding the market with cheap, and often low-quality products.
Reports today suggest Auckland-based Pacific Steel wants the Ministry of Business, Innovation and Employment (MBIE) to investigate.
According to Fairfax, that's upset China, which is now looking to sting New Zealand exporters in retaliation if an inquiry were to go ahead.
Chinese ambassador Wang Lutong told TV3's The Nation there's no problem with its steel anyway.
MBIE wouldn't confirm if it's received an application to investigate Chinese steel.
It also didn't comment on suggestions China had strong-armed Kiwi exporters into pressuring the Ministry not to go ahead with an inquiry.