Holding China Accountable for Illegal Steel Trade – IOTW Report

Holding China Accountable for Illegal Steel Trade

U.S. leaders need to crack down on market manipulation that kills American jobs

LZ-  Steel is one of the most important industrial commodities in the world — needed for everything from bottle tops to skyscrapers. The United States rose to worldwide prominence in the Industrial Era specifically because it could forge massive amounts of steel for railroads, buildings, and the “Arsenal of Democracy” that clinched World War II.

While steel remains a key input for automobiles, aircraft, bridges, and roads, the United States has been steadily losing market share in recent years, thanks to China’s active dumping of steel product on the world market. It’s a logical policy on China’s part, however, to dump excess steel capacity at below the cost of production. By continually running its steel output at full tilt, China is able to keep its industrial workers employed — even as the country’s economy slows down.

Notably, the ruling regime in Beijing remains in power only by virtue of its perennial quest to tamp down domestic discord. Labor strikes break out literally every day in China—and totaled 2,774 incidents in 2015 alone. Tellingly, these work strikes amounted to only 38 percent of all organized demonstrations across the country, revealing the depth of hostility toward a ruling party that strongly enforces an ongoing ban on independent trade unions.

China’s rise as a steel producer has been stunning, though. In 2005, the country remained a net importer of steel. But thanks to massive energy subsidies, and lax enforcement of weak environmental standards, China became the largest steel exporter in the world by volume in 2006.  more here

13 Comments on Holding China Accountable for Illegal Steel Trade

  1. Wait a minute…are you telling me that oppressive environmental and labor regulations and expensive energy have killed the steel industry in the U.S.? Who knew!

  2. Kaiser steel used to be here in the Fontana Calif town and supplied hundreds of jobs for many many years, but California and the EPA drove them out with all the regulations ( as well as many other companies). I remember when china sent over THEIR people to dismantle the steel plant piece by piece and tag-mark each piece to re-assemble. The city rented an entire hotel-motel for the workers and fenced it off from the public. A lot of angry ex steel workers were protesting etc. What a great loss for the area and so many jobs lost. Now there is a race track on the property. My dad worked there for many years but he luckily retired before all that happened. Trump can’t bring back the steel plants but I pray he keeps his promise to make America great again. If he does maybe my dad will sit up in his grave and yell- you go Donald…..

  3. It really galls me that the same people who get apoplectic when they see the Confederate battle flag have no problem whatsoever doing business with what is arguably the biggest slave state in the history of mankind.

  4. Chinese anything is $hit.
    We are forced to eat.I cannot
    buy anything that is not made in
    Chinky-China.The so called “steel”
    is soft and does not hold up.

  5. We put out a line of large electric cabinets. UL checks each one with a micrometer for thickness because there is so much crap Chinese steel out there they can’t trust its gauge rating.

  6. If China wants to make crappy steel, find a market for it and export it below cost, I have no problem with that. They can’t do it forever. Personally, I don’t eat anything that I know has been imported from China. I imagine reading the comments above that buying steel from China is getting the same rep.

    However currency manipulation is bullshit. We need to hold them accountable.

    The entire world has been feeding off our deficits, trade imbalances and fairy dust money for decades and when this shit stops, there’s goes to be a lot of people in a world of hurt. And I say too effing bad.

    Too bad they’re sitting on most of the rare earth elements. Although there’s been a recent drop because of over production(ring a bell?), I used to pay $2/lb for CeO2 back in the 80s($4 for the really high concentrate) and watched it go to $50/lb, a 2500% increase!

  7. The union b.s. also contributed, along with the capon management giving in to asinine union demands, to the demise of American steel. When the industry was going strong, management gave in to anything unions demanded, with no thought to how companies would pay for the demands down the road. When it got bad enough, the thousand dollar suits claimed their golden parachutes and bailed.

  8. An old machinist told me of busting bits trying to mill new stock and hitting old bolts from car blocks that didn’t melt.

  9. Anyone in the car hobby knows anything Chinese is CRAP. We’ve been complaining for years and the reply is “you have no choice”.

    Now we do MFers.

  10. Chinese steel for kitchenware is also crap. Stainless is NOT attractive but has been dinky, even when paying premium price. Several years ago I purchased two sets of name brand measuring cups from amazon, and at least one cup from each set came complete with rust.

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