Economy
Steel Associations Oppose Market Economy Status for China
Written by Sandy Williams
December 8, 2015
AISI and eight other steel associations met with government officials in Paris on December 1 to present arguments against granting China Market Economy status. The press release from AISI follows:
PARIS – The American Iron and Steel Institute, the Steel Manufacturers Association, the Canadian Steel Producers Association, CANACERO (the Mexican steel association), Alacero (the Latin American steel association), EUROFER (the European steel association), Instituto AcoBrasil (the Brazil Steel Institute), the Turkish Steel Producers Association and the Committee on Pipe and Tube Imports conducted an educational briefing for government officials last week in Paris where they presented a unified position on the negative impact of granting China Market Economy Status (MES) in December 2016.
Presentations at the December 1st event in Paris reviewed the continued significant role of the state in the Chinese economy, the resultant growth in Chinese steel overcapacity and the surge in Chinese steel exports to world markets in recent years. Representatives from the various regional associations detailed the negative consequences that would result from granting China MES before Chinese market-distorting policies were fully reformed. In addition, a legal analysis was presented by Alan Price of Wiley Rein LLP demonstrating that World Trade Organization (WTO) member countries were authorized to continue applying non-market economy methodologies in anti-dumping investigations until China or Chinese producers can show that they operate under market economy conditions.
Given the continuing significant role of the Chinese state in many key aspects of the Chinese economy, especially in its state-owned and controlled steel sector, there is no question that China remains very much a non-market economy today. For the steel industry, recognition or treatment of China as a market economy at the end of 2016 would coincide with the peak of Chinese excess steelmaking capacity and record level of exports to international markets, including the U.S., the EU, Turkey and Latin America.
The regional steel associations continue to urge governments around the world to undertake comprehensive assessments of the continuing role of the state in the Chinese economy and the steel industry, and the impact on industries around the world, if China were to be treated as a market economy before it made the necessary reforms to ensure that market forces were allowed to operate fully in the Chinese economy.
Sandy Williams
Read more from Sandy WilliamsLatest in Economy
Dodge Momentum drops on moderating data center growth
Slowing growth in data center planning caused the Dodge Momentum Index (DMI) to pull back in September. The decline followed five months of growth after the index hit a two-year low in March.
US construction spending drops again in August
Construction spending in the US declined for a third month in August but showed an increase year over year (y/y). The US Census Bureau estimated construction spending to be $2.131 trillion in August on a seasonally adjusted annual rate (SAAR). While this was 0.1% below July’s revised spending rate, it was 4.1% higher than spending […]
ISM: Manufacturing contracts again in September
US manufacturing activity contracted for the sixth consecutive month in September, according to the latest report from the Institute for Supply Management (ISM). The index has indicated a contracting industrial sector for 22 of the past 23 months.
Chicago Business Barometer remains gloomy in September
The Chicago Business Barometer increased marginally in September but continues to indicate deteriorating business conditions.
Consumer confidence sours in September
The Conference Board reported that consumer confidence in the US dropped to one of the lowest readings of the year in September. With concerns mounting about business conditions and the labor market, the tumble was the biggest monthly decline since August 2021.