UK Government ‘duped’ by China’s promise on steel

Tom, Chair of All Party Group on Steel, has said that the Government has been ‘duped’ by China’s promise to reduce their steel production.

Overproduction of cheap Chinese steel has been blamed for the crisis facing European steel producers such as Tata and the former SSI site in Redcar. The Chinese Government had publically committed to reducing its steelmaking capacity after mounting global pressure, but a new report reveals that in fact new steelworks have opened in China during this period leading to increases in steelmaking capacity.

The UK Government has previously argued for lower tariffs on imported Chinese steel, despite the crisis in the UK industry. It is also Government policy to support granting China Market Economy Status – a move which would reduce the ability of countries to add tariffs to imported Chinese goods.

Tom said:

This report shows the Government has been duped and our steel industry has paid the price.

Our Government has taken the Chinese Government at their word and are hoping that problems caused by Chinese steel dumping will go away – this report making it clear that they won’t. The Government’s stance on Chinese steel dumping at the European level is absurd. They seem to working harder to give subsidised Chinese producers access to our market than supporting steel jobs at home.

This news should mean our Government should harden its stance on Chinese steel dumping, but I won’t be holding my breath.

The report, by Greenpeace East Asia and steel consultancy Custeel, also highlights the damage steel over production is doing to air quality in China. This follows the news that the UK Government has classified the steel industry a ‘low priority’ in its Brexit negotiations.

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