US-China trade war having ‘no effect’ on China steel, amid surging domestic market and tariff exemptions
- New study shows Chinese steel producers are enjoying more exemptions from tariffs than those from Canada, South Korea, Spain and the United Kingdom
- China increased its total steel production massively in 2018, from 831.7 million metric tonnes to 928.3 million metric tonnes, almost half the world’s total
The trade war between the United States and China is having “no effect” on the Chinese steel sector, which is being propped up by “surging domestic demand”, according to a new study.
New research by US analysts shows that Chinese steel producers are enjoying more exemptions from US President Donald Trump’s tariffs on steel than those from US allies Canada, South Korea, Spain and the United Kingdom.
This is despite the fact that when the tariffs were invoked under Section 232 of the Trade Expansion Act of 1962, ostensibly on grounds of national security, China were expressly named by Trump and his close advisers as the primary target.
But almost one year on from the introduction of the tariffs on steel and aluminium, Chinese steel is enjoying a relative boom.
Exports may have fallen by 8.1 per cent last year to 9.34 million metric tonnes, but China increased its total steel production massively in 2018, from 831.7 million metric tonnes to 928.3 million metric tonnes, almost half the world’s total.
Surging domestic demand helped make up for the loss in export sales, with China being less reliant on steel exports than ever before.