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US officials continue to insist on the reduction of Chinese power

15 June 2016

In the United States under the Strategic & Economic Dialogue held a two-day meeting of Ministers of the American and Chinese sides. According to its results, the authorities of China reported on new measures. They will be used to further reduce steel production. Similarly, Beijing has demonstrated its own response to US demands. The us side continues to insist on a speedy reduction of excess export and supply of steel.

A new plan was developed by the Ministry of industry and National Commission for development and reform. Requirements for national steel producers significantly tightened. According to the plan, all steelmakers China to 10.07.2016 year are required to report on own consumption. Enterprises that exceed the limits established by the state, undertake to increase energy efficiency. They are given six months and a possible extension of the period of three months. In case of impossibility to obtain the desired result, factories are closed. Representatives of the PRC is silent on how excess capacity will be removed from the system after such a step. To date, the Chinese side continues to announce the closing of 100−150 million tons of capacity. The period of decommissioning and remains at five years. Also supported by the lack of investments in new projects in the steel sector.

The Minister of Finance of China Lou Jiwei noted that excess capacity emerged in 2008−2013. The impetus was implementation of programs of stimulation of economy. Achieved the desired result by investing. The Minister recalled that in this period, the global economy stabilized only thanks to China’s measures. At the specified time period Western countries had nothing against those efforts. Now the crisis is forgotten by many, which is reflected in the criticism of China in respect of overproduction. Thus, the US and the EU demonstrate its commitment to double standards.

The government of China emphasized calmly accepts the accusations made by Western countries. The country’s representatives continue to speak of a gradual withdrawal from the global market excess capacity. For their part, Western officials threaten China further measures to restrict Chinese imports. The province of Hebei promise this year to close 14.22 million tonnes of steel capacity.

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