Letter to the Editor in The Wall Street Journal: Hold China Accountable for Its Trade Practices

Regarding “U.S., G-20 See Common Ground Over China Exports” (U.S. News, Sept. 3), it is better late than never to see the Group of 20 nations acknowledge what the American steel industry has been saying for years—that policy-driven overproduction coupled with overreliance on exports is a global economic threat. This is a good first step, but now is the time for action.

China continues to produce and export much more steel than it consumes. This overproduction is fueled by massive state subsidies—15 times greater than that received by firms in other steel economies, according to the Organization for Economic Cooperation and Development. Beijing then dumps that excess steel around the world, undercutting market-based production.

China’s state subsidization of its steel sector continues unabated and is spreading to other critical manufacturing sectors, such as autos. Addressing the problem requires global coordination and cooperation. This month, when trade ministers gather in Milwaukee for the Global Forum on Steel Excess Capacity, they should follow our nation’s lead and come prepared to act. It is time to hold China and its enablers accountable for the unfair trade practices that destabilize steel markets worldwide.

Kevin M. Dempsey

President and CEO

American Iron and Steel Institute

Washington

Read the letter in The Wall Street Journal here.