China’s output of steel products hit an all-time high last month despite Beijing’s repeated pledges to address overcapacity, raising the risk of trade disputes with Washington and Brussels.
Steel is already the biggest source of trade rows between China and its trading partners, and Beijing has showed willingness to work on the issue.
Chinese and visiting European Union officials agreed last week in Beijing to set up a joint team to monitor steel trade data and China’s efforts to cut output.
But official numbers released last week showed few signs of a slowdown in production at Chinese steel mills or shipments of Chinese steel products.
China produced an unprecedented 100 million-plus tonnes of steel products in June, with steel product exports rising by 23 per cent to the second-highest total by volume on record.
Those numbers are expected to help amplify to already loud protests in Brussels against the dumping of Chinese steel products and opposition from industry groups to the EU granting China market economy status by the end of the year.
At the end of the China-EU summit last week, officials revealed that they had agreed to set up a joint team to monitor bilateral steel prices and volume and to track the implementation of Beijing’s policies to address overcapacity.
EU and Beijing to mount joint watch on Chinese steel cutbacks
European Commission president Jean-Claude Juncker announced the joint effort last Wednesday after the issue was raised during talks between Premier Li Keqiang, European Council president Donald Tusk and Juncker.
Juncker did not give details on how the team would work, but said overcapacity, especially in steel, was a big concern in the EU, which would do all it could to protect its steel sector.
Source: SCMP