China is producing much more steel than the country and the world can use, and is “dumping” it onto international markets. But when China was confronted with the dumping charge at a conference in Brussels this week, the Chinese government refused to back down.
The Chinese actions are causing steel operations around the world to shut down their own production and lay off workers. So far in the U.S., more than 13,500 steelworkers have been laid off or are facing layoffs.
China has again and again promised to reduce its steel production and help bring stability to world markets. Instead, China has actually increased production. In fact, the Alliance for American Manufacturing says, “Exports of Chinese steel last month were actually up 30 percent from where they were a year ago.”
A meeting in Brussels of the Organization for Economic Cooperation and Development (OECD) was called this week to discuss a “multilateral framework” for addressing China’s “structural overcapacity.” But China refused to commit to specific and timely actions to fix the problem.More ...