The steel industry in China is over-producing and domestic demand is low due to the economic crisis. Tax cuts and a devalued yuan facilitate exports. The US steel industry has lost 12 thousand jobs. Calls for a ban of Chinese imports of steel to International Trade Commission.
Beijing (AsiaNews / Agencies) - The United States has increased imports taxes on Chinese steel by 522%, accusing Beijing of selling their products below cost. The taxes specifically apply to Chinese-made cold-rolled flat steel, which is used in car manufacturing, shipping containers and construction.
In recent months, criticism of China selling off its steel products at bargain prices have also come from Europe.
China’s economy is struggling and its steel industry has a surplus given the decreased domestic demand. To facilitate exports and save the industry and jobs, the Chinese government provides subsidies to its industries.
The Chinese Ministry of Finance has not responded directly to the US decision, but today, on its official website it states that China will maintain tax breaks for steel exports, to help the recovery of the sector.
The major steel industries in the US have submitted a dossier to the International Trade Commission in which they ask for a note to be taken of all steel imports from China. They show that thanks to Beijing government tax breaks, the steel industry in the US has lost 12 thousand jobs.
Another tool used by the government to facilitate Chinese exports is keeping the yuan value low, not at all in line with its real purchasing power. Today, the Chinese central bank has decreed a value of the yuan against the dollar to 6.5346, 0.25% less than yesterday.