NEWS!Chinese government announces overhaul of illegal exports
In recent years, China has become is the world’s leading producer and exporter of steel. While the export trade has been growing rapidly, there have been many cases of illegal exports, which endanger the interests of the country and enterprises. Chinese government announces overhaul of illegal exports in the meeting on October 11th.“Encouraging high-end, restricting low-end, cracking down on illegality” is the point of this meeting.
About the meeting
The China Iron and Steel Industry Association Steel Export Work Conference was held in Nanjing Steel Group on October 11th. In order to regulate the export process of steel products, we call on enterprises to export rationally. The persons in charge of steel market and import/export marketing work from 16 steel enterprises, such as Nanjing Steel Group, Baowu, and Ansteel, participated in the meeting. Luo Tiejun, member of the Standing Committee of the Party Committee and Vice President of the China Iron and Steel Association, Shi Hongwei, Deputy Secretary-General of the China Iron and Steel Association, and other members attended the meeting.
Background
Data shows that from January to August this year, China’s cumulative steel exports increased by 20.6% from last year’s same period, but the cumulative total exports dropped by 6.8%. At the same time, the number of original investigations into trade remedies for Chinese steel products has increased significantly, reaching 23 so far. This exceeds the total number of trade remedy cases from 2021 to 2023 (15).
At the meeting, the export situation of enterprises in the first three quarters of 2024 was introduced. The impact of RMB appreciation on steel exports, the analysis of the steel export situation in 2024, and the industry export policy and association work were discussed. The participating enterprises agreed that in the first three quarters of this year, the company’s steel exports continued to show a year-on-year growth trend, the mian reason is the gross profit per ton of steel in foreign trade was greater than that in domestic trade. However, frequent international trade frictions and the appreciation of the RMB brought about by the Fed’s interest rate cuts will have a suppressive effect on exports. The participating enterprises suggested that it is necessary to strengthen the rectification of illegal exports and quickly restore the export tax refund for high-end steel products. It is recommended that the Iron and Steel Association increase the efforts to organize enterprises to jointly respond to lawsuits and call on the government to take measures to encourage financial institutions to help enterprises avoid exchange rate risks.
Key Discussions and Proposals
Luo Tiejun mentioned in his speech that due to the decline in domestic real estate steel demand and the price difference between domestic and foreign steel, steel companies often regard exports as an effective way to alleviate domestic market pressure. He responded to the issues raised by the companies one by one, and introduced the relevant work done by the association in the early stage and how to solve the problems in the later stage.
Luo Tiejun said that first, illegal exports endanger the interests of the country and enterprises, and it is urgent to solve this problem. The relevant ministries and commissions of the state have set up a joint investigation team, and the association will further strengthen communication in the future to promote the continuous effect. Second, the current large amount of steel exports has brought great difficulties to the promotion of export tax rebates for high-end steel. The association and most steel companies believe that the implementation of export tax refund for high-end steel products will not only not cause large-scale export growth, but will also effectively suppress the export of low-end products. The association will insist on communication and strive for policy support. Third, the association has discussed with some companies to actively respond to trade frictions on high-end products. Fourth, the CBAM piloted by the European Union and similar policies being formulated by more countries will put pressure on my country’s steel exports, and the association is actively planning corresponding countermeasures.
Luo Tiejun said that on the one hand, the association will actively promote the comprehensive transformation from dual control of energy consumption to dual control of carbon emissions, adjust production capacity with carbon constraints, and promote the balance of supply and demand; on the other hand, it will adhere to the principle of “encouraging high-end, restricting low-end, cracking down on illegality”, promote export tax refund, crack down on illegal exports, selectively and organizedly respond to international trade frictions, maintain steel export share, and continue to report core issues to government departments for resolution.
Shi Hongwei shared the recent winning experience of international trade friction, and said that the Association will sort out the suggestions from the enterprises and report them to the relevant departments, so as to achieve the goal of standardizing the export process, optimizing the export structure and adjusting the trade mode as early as possible.
The meeting was hosted by the China Iron and Steel Association and organized by Nanjing Steel Group.Market Research Department of the Steel Association, Nangang International Trade, major export enterprises, China Metallurgical Newspaper, etc. attended the meeting.
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