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On October 26 2019, the third Global Forum on Steel Excess Capacity Ministerial Meeting was held in Tokyo, Japan. Chinese Assistant Minister of Commerce Li Chenggang attended the meeting at the invitation of GFSEC.
China highlighted, China has reduced the most steel capacity and made the greatest contribution among all GFSEC members. China joined the Forum in the spirit of sincerity and cooperation. China is the only member of the Forum that has set targets and taken concrete actions on capacity Since 2016, China has reduced more than 150 million tons of steel production capacity, which is 114% of the world's total capacity reduction. In this process, China has resettled 280,000 steel workers alone, which outnumbers total steel workers respectively in the United At present, China's steel market has improved significantly. The utilization rate of crude steel production capacity has reached a reasonable range of more than 80%. China has made a great contribution to the healthy development of the global steel industry .
China stressed, most of the steel made in China is to satisfy domestic demand. Although China accounts for half of the global steel capacity and production, its consumption of steel is also near to half of that of the globe. At present, 93% of China's steel products are consumed domestically, only 7% of its output is exported, which has not flooded the global market.
China noted,excess capacity is a common challenge facing the whole world. The scourge of this round of steel overcapacity is the global economic recession and the decline of steel demand caused by the international financial crisis in 2008. Excess capacity is a universal, cyclical and Structurals in economic development. All parties should take an objective, historic and unbiased view of global steel excess capacity in the context of the financial crisis, and take concerted efforts to address it, in line with the principle of “global challenge, collective response ", which has been leaders' consensus since G20 Hangzhou Summit.
China reiterated, the Chinese government has provided the steel industry with appropriate WTO-consistent subsidies and support measures, which have not distorted the market or contributed to overcapacity. The information shared by Forum members on policies and measures show that China's support measures are also what Other members used to provide or are providing to their industry.
China believed, there are sufficient basis and reason for the Forum to come to an end as its duration expires. The Forum of Terms of Reference (TOR) provide, "The duration of the Global Forum will be three years. The duration can be extended based On the consensus of the members." The Osaka Leaders' Declaration did not authorize the extension of the Forum, and at the Ministerial Meeting, members failed to reach a consensus on it. Henceforth, the Forum comes to a natural end as the three- Year duration expires.
China regretted that the ministerial meeting failed to reach consensus on the ministerial report. Even though, China is willing to conduct communication and cooperation with relevant parties in an open-minded way. After the Forum ends, the relevant issues on steel industry and trade can Be discussed through existing channels and bilateral mechanisms.