China shrinks steel industry slowly, drawing Western ire

China’s steel industry is always impact global by its every move because of the mass of production and exporting. Meanwhile, half of world output by supplying from China. Exactly, a target of President Donald Trump’s ire after China’s Steel mill, namely small private workshop, has been closed.

The steel industry in China has surplus to grow in the past decade supporting a history-making boom of Chinese construction. After that, China had to face the circumstance of glut about steel industry. The most of mills and private workshops were as money-losing and depression about operation. In the meantime, USA has a trade battle to China as subsequence, and the impending trade war between the Trump administration and China has been building up for almost a year according to the news from CNN.

China shrink steel industry

April 2017, Trump launches investigation into steel imports

President Trump, who has vowed to bring jobs and manufacturing back to the United States, directs the Department of Commerce to inquire whether imports of foreign steel from China and other nations might be a danger to national safety .

August 2017, Another investigation tightens the screws on China Trump launches a second government probe, obviously targeted at China. He asks US Trade Representative Robert Lighthizer to focus on and look into unfair China’s trade practices, with a particularly pay attention on alleged Chinese theft of US intellectual property. The USA authority estimates later that intellectual property theft by China cost the USA “between $225 billion and $600 billion” annually. The state-run media in from China says that the probe will “poison” the relationship between these two countries, namely China and America, While the Chinese government slams the TRump administration’s “unilateralism and protectionism.”

March 9, 2018, Trump imposes tariffs on steel imports Trump follows through to the tariffs advocated by his trade division, taxing steel imports at 25 percent and compacted aluminum at 10 percent. US neighbors Canada and Mexico are exempted from the tariffs, together with Trump stating different other nations could receive similar exemptions whenever they could “ensure that their products no longer threaten our security.” China, the world’s largest steel exporter, predicts for the tariffs “a serious attack” on global trade and states it’s going to take”firm action” if Chinese companies suffer losses as a outcome.

April 2, 2018, China hits back

Beijing imposes tariffs on US imports worth approximately $3 billion, such as a 15% duty 120 American goods such as nuts, fruits, wine and steel pipes along with a 25% tax on eight others, such as recycled aluminum as well as pork. The Chinese government says its tariffs are especially in reaction to

this US trade steps against aluminum and steel. Among the prominent casualties of this Chinese tariffs is a US company which is owned by China. Virginia-based Smithfield Foods, the globe’s largest pork producer, will probably be struck hard. Shares in China’s WH Group, that possesses Smithfield, have dropped more than 11 percent since the tariffs were proposed 2 weeks ago.

Recently, Beijing, Capital of China, has close the lot of mills and eliminated 1 million jobs, and is moving gradually to alleviate USA and European anger at a flood of low cost exports that is more double the volume of Japan as second rank.

Trump responded a week with a blanket tariff increase soaringly on aluminum and steel, yet another alloy China’s trading partners whine that it oversupplies.

Chinese authorities say that they closed down 30 million tons of steel manufacturing capacity this past year. That cut is equivalent in dimension to the yearly output of the No. 9 manufacturer, Brazil, but just a sliver of China’s 800 million tons.

Beijing’s objective is to create its business more efficient and rewarding, not simply smaller. So while some private factories or mills has been shut, larger rivals step up generation and may become even more powerful international competitors.

Complete steel production climbed 5.7 percent this past year over 2016 to some list 831 million tons, according to the Chinese Cabinet’s planning agency, the National Reform and Development Commission. This was along with a 1.2 percent growth in 2016 and over seven days Japan’s output signal.

China shrink steel industry

Trump’s steel and aluminum tariffs: The target of Trump’s ire is China

US President Donald Trump signed proclamations last Thursday to impose a 25 percent tariff on steel imports and 10 percent on aluminum imports effective March 23. Is it a good news for steel pipe suppliers or consumers who purchase steel pipe or things like that?

The target of Trump’s ire is China

The US is the world’s biggest importer of steel, purchasing 35m ton of raw material in 2017 of which 6.6m ton came from South Korea, Japan, China and India. But Donald Trump on Thursday rolled out his new tariffs on steel and aluminum.

Trump’s announcement on tariffs underlined concerns about rising U.S. protectionism, which has sparked bouts of turmoil in global financial markets as investors feared a damaging trade spat would shatter a synchronized uptick in world growth. Both stock markets and economists tend to loathe tariffs, which hamper the basic efficiency of the market, rarely accomplishing more than saving a few jobs in exchange for higher prices across the entire economy. Stocks sank sharply after his remarks, as investors, already nervous about rising inflation and interest rates, began to worry that tariffs would push up prices of goods and lead to tit-for-tat measures from China and others. The Dow Jones industrial average ended down 420 points.

Billionaire investor and longtime Trump confidant Carl Icahn dumped $31.3 million of stock in a company heavily dependent on steel last week, just days before Trump announced plans to impose steep tariffs on steel imports.

And the president’s rhetoric on steel has focused on China. Trade tensions between China and US have risen since Trump took office, Trump has laid into China for sending excess cheap steel into the global market, which he says makes it impossible for American steel companies to compete.

“China is dumping steel all over the United States, okay? It’s killing you,” Trump said at a campaign rally in Pittsburgh in April 2016. “Maybe we get a little lower price, but we lose all the jobs.” It’s true that China, the world’s top exporter of steel, is a major source of a global supply glut that has driven down prices.“Our Steel and Aluminum industries (and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world,” Trump said in the tweet. “We must not let our country, companies and workers be taken advantage of any longer. We want free, fair and SMART TRADE!”

American and European steelmakers have made complaints echoing Trump’s criticism for years. But these tariffs threaten to destroy more US jobs than they will create while sending an alarming signal to our trading partners and diminishing markets for American-made products overseas. The reality is that there is nothing this country will gain from such a one-sided policy.

But any global trade fight goes back to China. Thanks to its rapid industrialization over the past four decades, China now makes roughly as much steel as the rest of the world combined. While it consumes much of what it makes, China is also by far the world’s largest exporter, although the amount it sells overseas has been on the decline.

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The fact of Steel and Aluminum industries

The fact is that many American industries need steel and aluminum. They’re used to build cars, skyscrapers, roads, bridges, washing machines, refrigerators, and a whole host of other products. More expensive steel and aluminum means higher costs for the American businesses that make these products —higher costs that will likely get passed on to consumers. And it makes business leaders nervous about the likelihood that Trump will start adding tariffs on other imports. And the burden of these tariffs, as always, will be passed on to the American consumer.”

Also when the cost of raw materials like steel and aluminum is artificially driving up, all American people ultimately pay the higher prices for everything from canned goods to electronics and automobiles. However,the official said that concerns about increased prices for consumers due to higher costs of steel and aluminum were overblown and that no jobs would be lost at downstream manufacturers that rely on the metals. So there is no doubt that upstream producers hailed the benefit of such a protectionist move, while downstream market participants bemoaned the effect potential action could have on their businesses.

In response to the US move, steel producing economies such as the EU and China have threatened to levy import duties on US exports. Also, China might consider taking action against the EC’s decision to extend the tariffs on Chinese stainless steel pips.

China urges reversal of the tariffs

The Chinese Commerce Ministry urged the United States to “exercise restraint in using trade protection tools, and observe multilateral rules,” according to the Xinhua report. Any trade war with the United States will only bring disaster to the world economy, the Chinese commerce minister Zhong Shan has said, as Beijing stepped up its criticism of metals tariffs introduced by the White House. In the years since China was allowed into the World Trade Organization in 2001, its global expansion has diminished its dependence on the U.S. as a consumer market. China is not the top country from which the United States imports steel. In fact, it’s not even in the top 10. Though China itself accounts for only a fraction of US

“If the United States’ final decision affects China’s interests, we will take necessary measures to defend our rights,” said Wang Hejun, a senior official at China’s Commerce Ministry, according to a report Saturday by state-run news agency Xinhua. He also claimed that the US measures are in essence trade protectionism in the guise of national security. Most US steel and aluminum import are for civil use and by no means impair US national security.