China has reaffirmed its pledge to cut steel production capacity after further pressure from the United State and th European Union at the Group of 20 summit in Hangzhou.
Chinese President Xi Jinping said in a speech that his country will cut crude steel production capacity by 100 to 150 million tons by 2020. “China will use the utmost effort and most concrete measures regarding production overcapacity; it walks the walk,” he said.
China has been blamed for the current global steel glut, which has seen prices plummeting and negatively impacting steelmakers across countries due to cheap Chinese imports.
The world’s biggest producer and consumer of steel, China exported about 103 million tons of crude steel last year, accounting for 12.8 percent of global output.
U.S. President Barack Obama, under pressure from domestic industry, was to also raise the issue with his Chinese counterpart Xi Jinping.
European Commission President Jean-Claude Juncker called for China to set up a mechanism to monitor the country’s steel overcapacity and said at a press conference at the summit that it was “crucial” for China to address the issue.
Several countreis have imposed anti-dumping and anti-subsidy measures against Chinese steel, but China has argued that the glut is due to a global economic slowdown.
The European Union currently has 15 anti-dumping and anti-subsidy measures against China’s steel industry, the latest one being levied in early August.