A group of US steel manufacturings firms released a report Thursday arguing that Chinese steelmakers are receiving illegal government subsidies, Bloomberg reported. The report said that the generous state loans, tax breaks and financing options Chinese steel firms receive violate WTO rules and provide them with an unfair advantage in the US market. "By making its steel industry artificially competitive in the world market, the Chinese government has disadvantaged market-oriented producers from around the globe," the report said. The paper comes during a debate surrounding a planned joint venture between China’s Anshan Iron & Steel group and Mississippi-based Steel Development to build a US$200 million factory for steel production. Opponents argue that the venture is Chinese government-supported and not a purely commercial enterprise.
Categories