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China accuses rival steel-making countries of hypocrisy
Add Time：2016-06-08 19:06:00 Clicks：
China accuses rival steel-making countries of hypocrisy
Chinese Finance Minister Mr Lou Jiwei accused other countries of hypocrisy for loud and frequent complaints about China's massive steel production they say has created a global glut and cost thousands of jobs in developed economies. At a meeting of the US-China Strategic and Economic Dialogue in Beijing, Mr Lou said the issue had been overhyped, China was already cutting capacity and Beijing had limited power to direct private metal mills.
He told reporters “The overcapacity problem, particularly in steel, has been subject to much hype around the world.”
Mr Lou pointed out China's production in sectors like steel had come about because of the 4 trillion yuan ($826 billion) stimulus program the government rolled out in response to the global financial crisis, which helped buttress world economic growth.
He added "Back then, the whole world applauded and gave thanks to China...now you are saying that China's overcapacity is affecting the world. Why did you not say that then?"
China cut 90 million tonnes of steel capacity last year, according to Mr Lou, and he said those cuts would continue.
However, he noted the government's powers were limited in terms of imposing hard quotas because more than half of the country's steel firms were private.
China is under pressure from the global steel industry to rein in production amid accusations it is dumping steel it can't use on world markets.
Research house MySteel estimated roughly 50 million tonnes of Chinese capacity was re-started, the equivalent of 41 blast furnaces with an annual capacity of 1.2 million tonnes. The restarted capacity was more than 10 times Australia's total production.
In recent weeks Chinese President Xi Jinping has emphasised the government would not support debt-fuelled growth and the steel sector has slowed down. Li Xinchuang, from the government backed the China Metallurgical Industry Planning and Research Institute, forecasts China's steel production to decline by 3 per cent this year to below 800 million tonnes.
He told reporters “The overcapacity problem, particularly in steel, has been subject to much hype around the world.”
Mr Lou pointed out China's production in sectors like steel had come about because of the 4 trillion yuan ($826 billion) stimulus program the government rolled out in response to the global financial crisis, which helped buttress world economic growth.
He added "Back then, the whole world applauded and gave thanks to China...now you are saying that China's overcapacity is affecting the world. Why did you not say that then?"
China cut 90 million tonnes of steel capacity last year, according to Mr Lou, and he said those cuts would continue.
However, he noted the government's powers were limited in terms of imposing hard quotas because more than half of the country's steel firms were private.
China is under pressure from the global steel industry to rein in production amid accusations it is dumping steel it can't use on world markets.
Research house MySteel estimated roughly 50 million tonnes of Chinese capacity was re-started, the equivalent of 41 blast furnaces with an annual capacity of 1.2 million tonnes. The restarted capacity was more than 10 times Australia's total production.
In recent weeks Chinese President Xi Jinping has emphasised the government would not support debt-fuelled growth and the steel sector has slowed down. Li Xinchuang, from the government backed the China Metallurgical Industry Planning and Research Institute, forecasts China's steel production to decline by 3 per cent this year to below 800 million tonnes.