China is already at the forefront of the world's overcapacity of steel production

Chinese Assistant Minister of Commerce Zhang Wei said in an exclusive interview with Xinhua News Agency in Brussels that the measures, determination and achievements of the Chinese government to resolve the overcapacity of steel are among the highest in the world.

After attending the "High-level Seminar on Excess Capacity and Structural Adjustment in the Steel Industry" sponsored by the OECD Steel Committee, Zhang Wei said that since the financial crisis, the global economic downturn and shrinking demand have been the root causes of the current world steel overcapacity.

Zhang Wei said that the world economy has not completely shaken off the impact of the financial crisis, and the recovery is slow. In particular, the recent geopolitical conflict has intensified, and the increase in uncertainties has made the recovery process worse.

He said: "China's steel industry has contributed to the development of the world economy." China is both a big steel producer and a big consumer. 85% to 95% of its steel production capacity is used for domestic demand. In the future, China's urbanization and shantytown transformation will be carried out. And the improvement of building standards will continue to increase the demand for steel. At the same time, China also imports a large number of steel products, providing a broad market for global steel products.

“Our steel exports increased by a maximum of 112 million tons last year. However, it only accounts for 14.5% of China’s total steel production, while some Western countries account for 40% of their steel exports.” In addition, in 2015, China's per capita steel stocks were only 5 tons, much lower than the Western countries' 8 to 10 tons.

Zhang Wei said that the reason why the Western media distort the facts and push the responsibility for overcapacity to China is because they only judge from absolute data, emphasizing that China's steel production accounts for about half of the world's total output. In fact, China itself has consumed about 46% of world steel production.

Zhang Wei said that the Chinese delegation has gained more understanding and recognition at the meeting on the status quo of China's steel industry and trade development, China's goal determination to resolve steel production capacity, ideas and results.

"We have eliminated 90 million tons of backward steel production capacity in just a few years, and will reduce the crude steel production capacity by 100 million to 150 million tons in the next five years. This amount is only 10 million tons less than the EU's total crude steel. Western developed countries have to spend 100 to 35 years to resolve 100 million tons of steel production capacity."

He said that China's resolution of overcapacity in steel is a proactive, conscious, firm and sustained action, as it is vital to the continued development of China's steel industry and an important contribution to the world.

Regarding China's steel subsidies, which are widely concerned by all parties concerned, Zhang Wei said that the Chinese government has no stimulating measures for the export of the steel industry. Not only is there no subsidies, but also restrictive measures are imposed on some steel products, and export tariffs are imposed. Other countries have basically no similar measures.

Zhang Wei said that in terms of overcapacity of steel, the complexity, difficulty and cost of China's problems are higher than those of Western countries. Overcapacity in steel is a global problem. It is the common challenge and common responsibility of the relevant economies. Only by working together, following the rules and gradual progress, can we achieve mutual benefit and win-win results.

"Resolving the excess capacity of steel requires the market and the government. But more is to create a level playing field, allowing enterprises to survive the fittest, achieve structural adjustment, optimize and upgrade. The Chinese government is in the steel industry. The above policy is very transparent and has won the understanding and respect of more and more participants