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Sino-US Steel Dialogue Glooms
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The third Sino-US informal steel dialogue was held in Washington on August 2-3. The dialogue covered the steel market's development, the US steel industry report, China's policies for its steel industry, US trade remedy measures for steel among other matters. On August 7, however, China Iron and Steel Association (CISA) threatened to resort to legal action against the US's groundless charges in its industry report. On August 8, the China Chamber of Commerce of Metals Minerals & Chemicals Importers & Exporters (CCCMC) put forth another statement against US-led anti-subsidy investigation on Chinese steel products. Thus, the outlook is bleak for dialogues between Chinese and US steel industries.

During the dialogue, the US side reportedly pointed out that its domestic steelmakers' livelihoods are under threat given the great increase of Chinese steel exports to the US during 2006. The US is suspicious that China may not be sticking to its part of eliminating 100 million tons in steel production capacity by 2010 and believes China is not progressing in its stated intention to phase out steel production capacity of 30 million tons this year. Chen Haoran, chief of CCCMC, retorted that the US' steel-hungry market has driven up imports from China and that the Chinese steel industry bears no responsibility for fluctuations in its US counterpart. Although Chinese steel product exports to the US hit a record high in 2006, the steel prices in the US market have always remained strong and grounded out its largest profits ever.

For more details, please read the full story in Chinese. (http://www.cnstock.com/newcjzh/headine/2007-08/09/content_2407969.htm)

(China.org.cn August 9 2007)

 

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