The American Iron and Steel Institute recently reacted to the conclusion of discussions of the Economic Track of the U.S.-China Strategic and Economic Dialogue, specifically about how the discussions pertain to China and the international steel overcapacity problem.
AISI and its member domestic steel producers were not impressed by a commitment by China’s central government to curb steel overcapacity, a promise made to Treasury Secretary Jack Lew at the talks.
“We appreciate the continued efforts of our government to engage China at the highest levels on the steel overcapacity issue and welcome the new commitments by Chinese leaders to adopt measures to strictly contain steel capacity expansion, reduce net steel capacity, eliminate outdated steel capacity, and dispose of ‘zombie enterprises’ through restructuring, bankruptcy and liquidation, as appropriate,” Thomas J. Gibson, AISI president and CEO, said.
Gibson continued, “China’s participation in further efforts to address global excess capacity at the Organization for Economic Cooperation and Development Steel Committee is also positive. But these commitments will only be meaningful if they lead to real results that produce a significant net reduction in excess steel capacity in China. We appreciate Secretary Lew’s commitment to keep the pressure on to ensure that progress is made in addressing this crisis.”