G20 to the EU before ripping a Chinese opening on cuts in steel production – EuNews

Brussels – It is for the moment a timid opening, but the G20 has just ended in Hangzhou in China, the European Union takes home at least one the first step on the possible reduction of the production of Chinese steel. One issue that is particularly dear to the old continent and the flooding Chinese steel at low cost (according to Commission data, the export of stainless steel from China to the EU grew by 70% from 2010) have meaning for the sector in Europe a sharp decline in production, employment, with about 10 thousand lost jobs, and investment.

the President of the European Commission, Jean-Claude Juncker has shown fierce on the subject since arrival in China. “This summit must urgently find a solution to the problem that is facing the steel industry,” he said before the meeting, saying he was determined to “defend the interests of European industry of steel and its workers.” Community Chief Executive has directly called upon the Chinese hosts: “It is crucial that China agree to establish a mechanism to monitor the over-production in the steel sector and its causes,” Juncker insisted remembering “we discussed the issue at the last EU-China summit in July and we agreed on a bilateral working group.” Management “credible” of steel overproduction, warned Juncker, will be “a test case” in view of China’s treatment in anti-dumping and anti-subsidy investigations.

If one found is a solution that ‘ EU considers credible remains to be seen, but it marks at least a first opening in the field by Beijing, which shows that they wish to reduce the export of steel that have been fixed without reference roofs. Under EU and diplomatic pressure of the United States, China has given his consent to the inclusion of the topic in the final communique drafted by leaders of the 20 most industrialized countries laying down to create a Global Forum, under the OECD control , to monitor the overproduction of steel. The mechanism does not specifically Beijing, which is not even mentioned in the conclusions. It rather acknowledges that excess steel production is “a global issue that requires a global response,” given that “has caused a negative impact on trade and workers.” The commitment of the winds is to “strengthen communication and cooperation and to take effective steps” as “increase information sharing and cooperation through the Global Forum on steel overproduction, which will be facilitated by the OECD with the active participation of members G20 and OECD members concerned. ” A first report on the situation will be released in 2017. It is perhaps the best that Europe could get but at least the Chinese are committed to start managing the problem on a global scale along with all the others.