China says steel overcapacity is global issue
China has warned of the consequences of the EU imposing tariffs on its steel exports, saying the overcapacity in the metal industry is a global problem.
Speaking at a Beijing press conference, China’s Minister of Commerce, Gao Hucheng, said the issue that has led to more than 5,000 job losses in Britain’s steel industry needed to be tackled on an international basis, reports The Telegraph.
Mr. Gao believes that China defends Chinese businesses in accordance with the rules of the World Trade Organisation. “Consumers and some other businesses benefit from the lower prices, so let us make the point that this is purely market behaviour, not the behaviour of the Chinese government or the EU governments,” he added, according to The Telegraph.
China produces more than half of the world’s output of steel, but a slowdown in economic growth has led to a decrease in domestic demand, so the industry is responding by dumping its products abroad.
Many of China’s steel mills are also state-backed, with the Beijing government subsidising the industry to prevent factory closures.
Source: The Telegraph