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EU member states call for action on Chinese steel dumping
Release time：
2020-07-15 18:22
Source：
EU member states called on Monday that the EU's trade protection weapons should be "full firepower" to protect the European steel industry from the "dumping" of Chinese steel.
According to the British "Financial Times" report, the sluggish European steel industry is the main reason behind this action of the EU member states. Since 2009, the size of the workforce in the European steel industry has shrunk by one-fifth, and steel demand has also been reduced by 25% from the level before the 2008 financial crisis.
China's domestic overcapacity has become the handle of Europe. Steel company executives say that China has used the excess capacity of domestic steel plants to "dump" products in the European market at prices below production costs.
In addition, they also worry that the European Commission may recognize China's market economy status next year. As a result, many weapons used by the EU to impose tariffs on Chinese steel exports will be directly invalidated. China joined the World Trade Organization (WTO) in 2001, and according to the agreement, China will automatically gain market economy status in 2016.
But whether the US and Europe agree with this result is not yet known. Once they agree with China's market economy status, it will be difficult to implement retaliatory tariff measures against China. The strongest opposition in Europe came from traditional manufacturing industries, such as steel, clothing and bicycles.
From a global perspective, the entire steel industry has already faced the dilemma of overcapacity. The excess capacity is about 645 million tons, and analysts expect that about 300 million tons will be contributed by China.
Wall Street News mentioned earlier that global steel production is 1.6 billion tons, and China accounts for nearly half. The export volume in the first seven months of this year has been comparable to the output of Japan, the world's second largest steel producer. Reuters predicts that as domestic economic growth slows, China’s steel exports will reach a record 100 million tons this year to help digest excess capacity estimated at up to 300 million tons.
Under the environment of weak global demand and excess domestic production capacity, China's steel export volume surged this year, which was referred to as dumping by overseas counterparts. In October, the export volume fell by 20% month-on-month, which may indicate that China's steel export tide has begun.
Last month, Tata Steel, a global Fortune 500 company, directly blamed 1,200 job cuts in its UK operations on the import of a large number of cheap products, especially steel products from China.
A survey released by the US Department of Commerce last week also revealed that it may impose a tariff of up to 236% on some of China's corrosion-resistant steel exported to the United States. The US steel industry said that steel makers in five countries including China and India benefited from a wide range of subsidies. American manufacturers did not enjoy such subsidies. China alone has 48 different subsidy programs.
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