Arab Today, arab today us treasury secretary lew raps china
Last Updated : GMT 00:07:53
Arab Today, arab today
Arab Today, arab today

On excess steel production

US Treasury Secretary Lew raps China

Arab Today, arab today

Arab Today, arab today US Treasury Secretary Lew raps China

China is the world's number one steelmaker
Beijing - Arab Today

Chinese oversupply of steel is "damaging and distorting" global markets, US Treasury Secretary Jacob Lew said Monday, joining a chorus of criticism that blames Beijing for plant closures and job losses in the industry worldwide.

China is the world's number one steelmaker, producing more than half of global output, but stands accused of flooding the market with steel at below cost prices -- dumping -- in violation of international trade rules.
"Excess capacity has a distorting and damaging effect on global markets," Lew said at the US-China Strategic and Economic Dialogue in Beijing, a key annual meeting between the world's two top economic powers.

"Implementing policies to substantially reduce production in a range of sectors suffering from overcapacity, including steel and aluminium, is critical to the function and stability of international markets."

Lew's comments echo those of other senior officials around the world who have blamed the Chinese supply glut for industry turmoil in Europe and elsewhere.

Among those hit has been Indian-owned Tata Steel, which said in March it was selling its struggling British assets -- putting 15,000 jobs at risk.
At Group of Seven summit talks in Japan last month world leaders said the global steel oversupply must be "urgently addressed", in what was seen as a barely disguised jab at China.

The US has punished Beijing with harsh tariffs, most recently in March, when it slapped a 300 percent rate on the cold rolled steel used to make auto parts.

The EU, the second-biggest steel producer, has launched a dumping probe into Chinese steel but angry manufacturers have urged it to mirror the US's tough tariffs.

The 28-nation bloc said this month that granting market economy status for China at the World Trade Organization was "untenable" because it would cost jobs in Europe in industries such as steel.

The designation would make it much harder for major economies to fight Beijing over alleged unfair trading practices.

But Beijing hit back Monday, with Finance Minister Lou Jiwei defending overcapacity as a hangover of China's rapid economic growth.

“Now the world is pointing a finger at China saying its overcapacity is a drag on the world, but they didn't say so at the time China contributed to world growth."

He added that half of Chinese steelmaking firms are privately owned, and "they are not going to accept any instructions from us".

- Social instability -

China's steel industry is huge, with national production growing sevenfold from 2000 to 2014 on the back of massive infrastructure investment in cities and as the government ploughed billions of dollars into heavy industry to counter the impact of the 2008 financial crisis.
But demand for steel has fallen as the rate of economic growth has slowed, leaving producers making hundreds of millions of tonnes more than they can sell domestically each year.

Chinese leaders have repeatedly pledged to address the issue of excess capacity, admitting it is a drag on their own economy.

The country's largest steel firms are state run, and the government wields significant control over the industry as a whole.

Beijing has vowed to eliminate 100 million to 150 million tonnes of capacity -- out of a total of 1.2 billion tonnes -- by 2020, saying the reforms would cost 500,000 jobs. 

But local governments with ownership stakes in steel firms have resisted reforms, fearing the social instability that mass layoffs could cause.

Ratings agency Fitch has said that the plan to cut capacity "faces immense social and financial challenges", while laid-off steelworkers have already begun to protest at losing their jobs.

Ahead of the Beijing meeting, Lew said he didn't think policies to deal with excess capacity had been implemented.

"They made the policy commitment to make these changes, they now have to implement and execute, not just at the national level but at the provincial level as well," he said according to Bloomberg. 

Source: AFP

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us treasury secretary lew raps china Arab Today, arab today us treasury secretary lew raps china

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today us treasury secretary lew raps china Arab Today, arab today us treasury secretary lew raps china

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Israeli court convicts Palestinians of 2016

GMT 04:39 2017 Tuesday ,17 October

Israeli court convicts Palestinians of 2016
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Anoshka happy for reactions to her talk show

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:55 2017 Thursday ,12 October

Safaa Sultan happy for “Love School”

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:25 2017 Saturday ,14 October

Squeeze on UK health gives advanced

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday