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Expert: China-US strengthen dialogue to address overcapacity

CCTV.com

05-11-2016 00:22 BJT

Chinese steel products are facing increasing pressure in the international market, as more countries take trade remedy measures against imports from China. Last month, US Steel lodged a complaint with the US International Trade Commission (ITC) , under Section 337 of the Tariff Act of 1930, against some 40 Chinese steel producers and their distributors. Experts say the two countries should improve dialogue and communication on global steel overcapacity.

It hasn't been easy for China's steel industry, either at home or abroad.

In 2015, Chinese steel exports were the subject of 37 investigations worldwide.

That's equal the number in the previous two years.

The United States is one of the main battlefields.

"Over the past years. the US has launched over thirty anti-dumping and anti-subsidy investigations against China. However, China's steel exports to the US account for only less than two percent of the US steel market share," said Xu Xiangchun, chief analyst Mysteel.com.
 
Xu Xiangchun worked for the China Iron and Steel Association for over ten years.  He says blaming China for the slumping iron and steel market in the US is unfair.

Xu now works for one of China's biggest steel e-Commerce sector companies... and one of his tasks is to deal with up-to-date steel prices every day.

Figures indicate that the US is not a main market for China.

According to the Association, Asia accounts for over 70 percent of China's main export market in this industry... The EU is less than eight percent, and the US, less than two.

"Steel excess capacity has become an acute global challenge, experts say that governments and steel-related organizations should, instead of blaming each other... take collective action to address the situation," said Hou Na Beijing.

The Ministry of Commerce says China has been focused on cutting overcapacity.  Its actions are graduallly showing results.

"To make sure that excess capacity will be eliminated in an orderly manner, the central government has allocated an earmarked fund of 100 billion yuan ($15.45 billion), which will be used to resettle workers," said Xu Xiangchun, chief analyst Mysteel.com.

In recent years, the government has implemented measures such as export tariffs on some steel products to reduce exports.

China is also working on broadening areas for steel consumption.

But rebalancing the economy under the New Normal means there's no easy fix, soon.

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