Trade pressure targeting China's 'industrial overproduction' is intensifying, particularly from the U.S. and Europe. The U.S., along with Japan and other European nations, has agreed to establish an international cooperation framework to address China's steel overproduction.
According to the South China Morning Post on October 1, 28 countries, including the U.S., Japan, and European nations, have decided to share information related to steel imports and production while strengthening trade barriers in response to overproduction.
This initiative includes reducing or eliminating subsidies that distort the market and sharing information about non-market policies and practices of non-member countries. Notably, there are plans to share information on trade suspected of circumvention, allowing for the imposition of anti-dumping duties on steel products exported through third countries.
This proposal was put forth by U.S. Trade Representative Jamieson Greer during the Global Forum on Steel Excess Capacity (GFSEC) held in Milwaukee, Wisconsin, on September 30, and has been named the 'Milwaukee Framework.'
GFSEC is an international consultative body established in accordance with agreements from the 2016 G20 summit to address the issue of steel overproduction. It currently includes 28 countries and regions, such as the U.S., European Union (EU), Japan, and South Korea, with China not being a member.
In a statement, Greer emphasized, "If partner countries adopt similar policies, we can hold accountable those nations responsible for the global steel overproduction problem," which is widely interpreted as a reference to China.
After the meeting, he told reporters, "The U.S. has taken strong action, and it would be reasonable for other countries to do the same." When asked if most G20 members had agreed to raise tariffs on Chinese steel, he replied, "Each country will take actions they deem appropriate." He added that the 'Milwaukee Framework' would encourage countries to strengthen trade barriers on steel imports.
China is the world's largest steel producer. According to the World Steel Association, its crude steel production is expected to reach approximately 960.8 million tons by 2025, accounting for about 52% of global production, a significant increase from 15% in 2000.
However, with domestic steel demand stagnating, concerns have grown among major countries that China's overproduction is being imported at low prices, harming their own industries. As a result, countries have imposed trade regulations, including tariffs and anti-dumping duties on Chinese steel. However, there has been a challenge in identifying the origin and supply routes of steel that is processed in third countries before being exported.
Meanwhile, Western pressure on China's industrial overproduction is spreading beyond steel to the broader manufacturing sector, including automobiles. Recently, the EU has demanded that the UK raise tariffs on Chinese cars and align its trade policies with the EU more closely. This concern arises from the possibility that lower tariffs in the UK compared to the EU could allow Chinese cars to enter the EU market through the UK.
* This article has been translated by AI.
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