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Overproduction is a global problem

6 September 2016

Bloomberg quoted a phrase from the joint communications of the participants of the G20 summit. It took place in Hangzhou in the PRC on 4 and 5 September. According to them, structural problems have a negative impact on work and trade. Refers to excess capacity in certain sectors. The aggravation of the same observed on the background of slow recovery of the global economy and low demand. The approaches to solving the global problem of overproduction of steel are quite different. But the new proposals aimed at positive changes and did not hear.

Representatives of the European Commission habitually lay all the responsibility on China. China is the leading steel producer on a global scale. And that China owns the largest amount of excess capacity for the production of steel. Jean-Claude Juncker, the Chairman of the EC said that China should deal with the monitoring of overproduction. We need to create a monitoring mechanism, but also to establish the causes of excess. The development of such system will affect the methods of conducting anti-dumping investigations and antisubsidy. To date, the EU is actively imposes duties on Chinese steel. Anti-dumping and countervailing duties applied to 15 product categories.

European experts gave their own assessment monitoring system proposed by Juncker. It will be another tool to restrict Chinese imports. The requirements of metallurgical lobby" for anybody not news. According to him, Brussels is high time to impose rent PRC duties in the United States. However, at the moment the grounds for such action are not available. The new monitoring can significantly change the situation. It is expected that he will be able to identify the most to blame for the overproduction of the company. And the punishment for them will be correspondingly large. Earlier, the EC expressed dissatisfaction with the reluctance of China to assist in the investigation.

Zhu Guangyao, Deputy Minister of Finance of China, the President expressed his point of view. He is confident that the challenges of the global market due to insufficient demand. As for overproduction, this is a common trouble. And to resolve this issue you need to work together. However, only China today, actually reduces steel production. XI Jianping, the President of China, for its part, has proposed to stimulate economic growth through innovation. He also urged all present to cooperate in the fight against corruption.

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