China’s Steel Industry Is Dominating the Global Market

China is the world’s biggest steelmaker, explains Peter Pham for Forbes. The country manufactures nearly half the world’s steel, essential for modern economies and infrastructure. Other Asian nations make 19 percent of the world’s steel; the EU, 10 percent; and NAFTA, 7 percent. As Chinese leaders try to transform the economy toward more services and reduce manufacturing, investment in Chinese construction is slowing. The country’s steelmakers export steel at prices up to 50 percent less than those of competitors. Confronting plant closures, other countries respond with tariffs: 20 percent in India, 46 percent in Britain, 236 percent in United States. Pham predicts that steel prices will stay low. China is destined to become the world’s largest economy before 2020, accounting for 13 percent of global GDP. The rest of the world must adjust to every change from China. – YaleGlobal