An Analysis of China’s Steel Industry from 2000-2007
When China identified steel as a strategic industry in the early 2000s, its government ramped up steel production with massive subsidies. Total energy subsidies to Chinese steel from 2000 to mid-2007 reached $27.1 billion, and that conservative estimate may just be the tip of the iceberg.
Resources
International Trade Commission Ruling on Seamless Pipe from China
ITC ruled the U.S. steel industry was injured or threatened with injury from dumped pipe from China.
The Takeaways
China went from a net steel importer to a steel exporter in 2005. It became the largest steel exporter in the world by volume in 2006, up from fifth largest in 2005.
From 2000-2006, China’s energy subsidies to steel grew by 1,365 percent. In 2007, energy subsidies to Chinese steel are estimated at approximately $15.7 billion, a 3,800 percent increase since 2000.
These subsidies have contributed directly to the ballooning of Chinese steel exports and have affected the global and U.S. steel industries.