Trade Cases

China Has Failed to Comply With WTO Commitments: AISI

Written by Ethan Bernard

The American Iron and Steel Institute (AISI) has laid out a case for China’s failure to comply with its World Trade Organization (WTO) obligations, which it joined in 2001.

“Despite more than two decades in which to make reforms, China continues to use massive subsidies and other forms of government support to build and maintain an enormous steel industry in violation of market principles and China’s WTO commitments,” AISI said in a 42-page document to the US Trade Representative (USTR) on Sept. 20.

The institute said “these comments particularly relate to import regulation, export regulation, internal policies affecting trade, intellectual property rights, and other WTO commitments.”

AISI said that in 2023 crude steel production in China is expected to exceed 1 billion metric tons for the fifth consecutive year. This is ~10 times the annual steel demand in the US.

“AISI strongly urges the Biden administration to take action to hold China accountable for its trade-distorting policies and practices,” the institute wrote. This can be accomplished by “reinforcing the trade actions taken by the previous administration.” These measures “aimed to counter China’s export-driven economic policies that adversely impact US steelmakers.”

The institute noted there is “a broad, international consensus, based on an overwhelming amount of evidence, that China has largely abandoned its policy of liberalizing its economy.” Instead, AISI said, China “continues to adhere to a policy of state capitalism that is antithetical to the principles of free and fair trade.”

AISI submitted the comments in response to a request from the Office of the USTR. They were given to the interagency Trade Policy Staff Committee (TPSC). View the full document here.

Ethan Bernard

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