Leaders Must Crack Down on China’s Overcapacity to Preserve Steel Jobs: AAM Statement
Representatives from G20 and other steel-producing countries will reconvene in Berlin on Thursday for the Global Forum on Steel Excess Capacity. The group, formed one year ago, is meant to address issues contributing to the global steel crisis, including China's massive overcapacity.
Said Alliance for American Manufacturing (AAM) President Scott Paul:
"It's time for China to pay its tab.
"The domestic steel sector continues to be plagued by China's massive industrial overcapacity, which is fueled by state-subsidies. Beijing acknowledged its overcapacity a decade ago, yet Chinese steel mills continue to flood the global market at the cost of U.S. factory jobs.
"Since the campaign trail, President Trump promised to stop China's predatory trade practices but has delayed action on open steel and aluminum investigations since July. Meanwhile, tens of thousands of steelworkers are facing layoffs, and at least two Pennsylvania steel mills have announced closures in the face of rising imports.
"Our workers and steel makers need significant, enforceable outcomes to save factory jobs. Regular meetings won't cut it unless countries like China face consequences tied to its overcapacity - and the global community must step up to take meaningful action if President Trump won't."
Paul also stressed the need to directly press China in a letter to President Trump sent Wednesday. Paul wrote:
"Without the definite agreement and active participation of major global steelmaking countries to sharply reduce global overcapacity, and to do so promptly, it is necessary to take broad action to safeguard American jobs and our ability to produce steel for national security purposes. This includes an immediate conclusion to the Section 232 investigations you initiated in April regarding the national security implications of imports of steel and aluminum."
To read the full letter, visit AmericanManufacturing.org.