Chinese Steel Subsidies Questioned

Based on the search results, there is overwhelming evidence to suggest that Chinese steel is heavily subsidized by the Chinese government. The subsidies take various forms, including:

Preferential lending and tax rebates Cash grants and capital infusions Preferential loans and directed credit Land use subsidies Subsidies for utilities and raw materials Tax policies and benefits Currency policies Lax enforcement of environmental regulations Multiple sources, including reports from the European Commission, the American Iron and Steel Institute, and trade associations, have documented these subsidies. For example:

The European Commission found that Chinese steel producers benefit from “preferential lending, tax rebates and other financial help” that allow exports to sell at prices below local European competitors. A 2007 report by the American Iron and Steel Institute estimated that the Chinese government granted over $52 billion in subsidies to steel producers over a five-year period, making China’s steel capacity four to five times larger than the entire North American steel industry. Another report from 2014 concluded that massive government energy subsidies, not low-cost labor, keep prices down in China’s steel industry. A 2017 report found that the 25 largest Chinese steelmakers received significant subsidies, including cash grants and capital infusions, totaling hundreds of millions of dollars. These subsidies have enabled Chinese steel producers to operate at a disadvantage to their global competitors, leading to dumping and distortions in the global market. The European Union has imposed anti-dumping duties on Chinese stainless steel, and the United States has also taken action to address the issue.

In conclusion, based on the available evidence, it is clear that Chinese steel is heavily subsidized by the Chinese government, and this has significant implications for the global steel industry and trade.