China has just liberalized restrictions on steel exports and it has been the “joint protest†of the US steel industry. The United States' five largest steel associations recently issued a joint statement saying that China should stop export tax rebates, subsidies and other policies to promote domestic exports of cheap steel, and require the US government to adopt a positive response to China’s steel trade policy.
Chinese experts pointed out that the development of the Chinese steel industry is based on satisfying domestic demand, the export ratio is very small, and the export tax rebate is in line with international practice and is not considered a subsidy.
According to report, last week the American Iron and Steel Workers' Association, the American Iron and Steel Association, the Steel Manufacturers Association, the North American Iron and Steel Association, and the Steel Pipe Import Committee drafted a joint statement demanding that the U.S. government take a positive response to China’s steel trade policy. .
The statement required that China should stop subsidizing excessive, redundant, inefficient and highly polluting steel production capacity. The U.S. government should vigorously enforce its own laws to combat unfair trade practices, boycott China's "illegal behavior" that violates WTO principles, and its efforts to circumvent anti-dumping laws in the United States.
In fact, the United States’ “complaint†on subsidies to the Chinese steel industry is not the first time. In recent years, both China and the United States have been trying to resolve disputes through strategic dialogue. However, the differences between the two sides have not been resolved. The American Iron and Steel Association even released a US industry report, accusing the Chinese steel industry of receiving more than $52 billion in government subsidies in the past 10 years. In this regard, China believes that the report and accusations are seriously lacking in factual evidence.
Zhou Shichen, executive director of the China World Trade Organization Research Association and senior researcher at the Sino-U.S. Relations Research Center at Tsinghua University, told reporters that evidence of subsidies for the Chinese steel industry held by the US is mainly due to China’s export tax rebates on export products, RMB exchange rate issues, and local governments. Encourage subsidies. "China's implementation of export tax rebates on export products is in line with international trade theory and can never be considered a subsidy. In addition, China produced only 1.9 billion tons of steel during the 20th century, while the United States has consumed 7.1 billion tons of steel. It can be seen that the import of steel by the United States is entirely caused by domestic demand rather than China’s threat.â€
In order to ease the pressure on the domestic market, the Chinese government last week cancelled the export tariffs on most of its steel products. This is also the trigger for the United States to initiate "accusations" against China's steel exports. A few days after China’s cancellation of steel export tariffs, the U.S. Department of Commerce has stated that it has been determined that welded steel pipes from China have received government subsidies and the prices of products exported to the United States have fallen below reasonable values, and will therefore impose charges on welded steel pipes from China. 35.6% to 40% countervailing duty.
“My steel†research center analyst Zeng Shengsheng believes that although the cancellation of export tariffs theoretically contributes to the export of Chinese steel products, current foreign demand is quite weak, domestic and foreign price spreads are still still, and it is estimated that the increase in exports will not be too great. . However, given the generally unfavorable global economic situation, it should also be noted that if there is a clear increase in China’s steel exports, foreign anti-dumping and anti-subsidy investigations on Chinese steel products will also intensify, so try not to increase too much to the same country at the same time. Steel exports.
Chinese experts pointed out that the development of the Chinese steel industry is based on satisfying domestic demand, the export ratio is very small, and the export tax rebate is in line with international practice and is not considered a subsidy.
According to report, last week the American Iron and Steel Workers' Association, the American Iron and Steel Association, the Steel Manufacturers Association, the North American Iron and Steel Association, and the Steel Pipe Import Committee drafted a joint statement demanding that the U.S. government take a positive response to China’s steel trade policy. .
The statement required that China should stop subsidizing excessive, redundant, inefficient and highly polluting steel production capacity. The U.S. government should vigorously enforce its own laws to combat unfair trade practices, boycott China's "illegal behavior" that violates WTO principles, and its efforts to circumvent anti-dumping laws in the United States.
In fact, the United States’ “complaint†on subsidies to the Chinese steel industry is not the first time. In recent years, both China and the United States have been trying to resolve disputes through strategic dialogue. However, the differences between the two sides have not been resolved. The American Iron and Steel Association even released a US industry report, accusing the Chinese steel industry of receiving more than $52 billion in government subsidies in the past 10 years. In this regard, China believes that the report and accusations are seriously lacking in factual evidence.
Zhou Shichen, executive director of the China World Trade Organization Research Association and senior researcher at the Sino-U.S. Relations Research Center at Tsinghua University, told reporters that evidence of subsidies for the Chinese steel industry held by the US is mainly due to China’s export tax rebates on export products, RMB exchange rate issues, and local governments. Encourage subsidies. "China's implementation of export tax rebates on export products is in line with international trade theory and can never be considered a subsidy. In addition, China produced only 1.9 billion tons of steel during the 20th century, while the United States has consumed 7.1 billion tons of steel. It can be seen that the import of steel by the United States is entirely caused by domestic demand rather than China’s threat.â€
In order to ease the pressure on the domestic market, the Chinese government last week cancelled the export tariffs on most of its steel products. This is also the trigger for the United States to initiate "accusations" against China's steel exports. A few days after China’s cancellation of steel export tariffs, the U.S. Department of Commerce has stated that it has been determined that welded steel pipes from China have received government subsidies and the prices of products exported to the United States have fallen below reasonable values, and will therefore impose charges on welded steel pipes from China. 35.6% to 40% countervailing duty.
“My steel†research center analyst Zeng Shengsheng believes that although the cancellation of export tariffs theoretically contributes to the export of Chinese steel products, current foreign demand is quite weak, domestic and foreign price spreads are still still, and it is estimated that the increase in exports will not be too great. . However, given the generally unfavorable global economic situation, it should also be noted that if there is a clear increase in China’s steel exports, foreign anti-dumping and anti-subsidy investigations on Chinese steel products will also intensify, so try not to increase too much to the same country at the same time. Steel exports.