China's steel industry has flayed the 'Buy American' clause in the $787 billion US stimulus plan and said such a move would make the infrastructure projects funded by the program inaccessible to Chinese steel products, a senior industry official said.

The 'Buy American' clause in the bill introduced by US President Barack Obama recently requires that all public works funded by the stimulus package should use only made-in-US iron, steel and manufactured goods.

"Such a clause is a violation of the World Trade Organization rules," Luo Bingsheng, vice-chairman, China Iron and Steel Association said yesterday.