The Prime Minister John Key is playing down allegations of complaints that China is dumping steel in New Zealand below cost.
Fairfax Media reported steel makers had complained to the government that Chinese manufacturers were dumping excess steel here - and threatening trade retaliation if it was investigated.
The practice of 'dumping', or selling surplus goods below cost, is illegal under most trade agreements.
The Ministry of Business, Innovation and Employment (MBIE) said it could not confirm or deny whether it had received two complaints from New Zealand steel producers about the Chinese steel.
New Zealand First leader Winston Peters said he wanted to know why Chinese officials appeared to know more than officials in this country about the complaints.
"It may be that the government has told the Chinese, via their officials, that this investigation was happening.
"But whatever it is, the government's been pretty silent on the inference that they either told the Chinese government this was happening, or second, there has been a leak of some sort," Mr Peters said.
Mr Key said he has not heard about a complaint and if one had been made to the Ministry of Business, Innovation and Employment, then it would initially be confidential.
And he said if there was a problem he did not think China would retaliate.
"Our exports are flowing across the border into China, I regularly see the Chinese leadership.
"The Chinese ambassador has my phone number if he wants to pick it up and make a phone call.
"None of those things have happened," Mr Key said.
Labour Party finance spokesperson Grant Robertson told Morning Report the investigation was already off to a bad start, given that Chinese officials had learned of it.
He said complaints about dumping and similar illegal behaviour needed to be handled carefully and any investigation should be completed before the other country involved finds out.
"Going down the path of the anti-dumping type approach you've got to be very careful, you've got to have all your ducks in a row, do the investigation before the other country becomes involved.
"This process looks very messy."
If dumping was happening, it could undermine New Zealand's own steel industry, Mr Robertson said.
Source: Radio NZ