SCIO briefing on China's commerce development in 2015

Guo Weimin:

The last question.

China Daily:

Recently, the European Commission called for the Chinese government to cut steel production capacity and announced anti-dumping investigations into three types of Chinese steel products. What's your comment on this? Thank you.

Gao Hucheng:

In the past few years, we've seen a sluggish recovery and slow growth in the global economy as well as increasing uncertainties and destabilizing factors. Many countries are adjusting their policy orientations. Especially, early this year, there were some fluctuations in the global stock and exchange markets. However, the core issue is a major change in supply and demand, and overcapacity has become a global problem. As I mentioned earlier, many reasons, such as regional disputes and geopolitics, can account for price fluctuations in major commodities including energy, mineral and agricultural products. Yet, one undeniable factor and something that needs be confronted, is the change in supply and demand. The huge fall in commodity prices is deeply related to the supply and demand relationship. It is the same with energy products as well as in steel products and other commodities.

Second, China has been the largest country in the trade in goods from 2013. And it has faced the largest number of anti-dumping allegations for 21 consecutive years. Years ago, many people like me were arguing that we should be calm in regard to those trade remedy measures and not overreact to individual cases. According to WTO provisions for trade remedy, as long as it involves a certain scale, a company has the right to file a petition seeking anti-dumping and anti-subsidy measures. And trade remedy agencies in that country must accept its petition and launch investigations into the case.

Third, overcapacity in the steel industry is a global problem needing a global solution. We have maintained quite good communications with the United States and European countries in this regard. China has been involved in OECD discussions and dialogues on this issue for 10 years. With regard to EU's trade remedy investigations into some types of Chinese steel products, I want to highlight the following points. First, we should talk about it within a general context. China's export of steel products to EU member countries is a form of market behavior. Many people may find out that some businesses have been affected and filed petitions for trade remedy. However, we should also see that some companies and consumers have actually benefited from the imported products. The steel products were purchased by EU's importers or consumers at reasonable prices. And this is a fundamental aspect of the case. The fact that some companies have raised petitions is also a part of market behavior, and should not be misinterpreted as government or European Commission behavior. Second, we should safeguard and defend Chinese companies' lawful rights in accordance to WTO rules. Third, we should encourage dialogue and cooperation among all parties. This is an experience drawn from successful cases we have dealt with along with our major trade partners. And it especially applies to cases with the EU. Many of you may recall our successful settlement of trade friction over PV products and polysilicons with the EU. The case involved an amount totaling more than US$20 billion. In the end, thanks to cooperation among government, industries and companies, a deal was agreed that satisfied the Chinese company's quest for a share of the European market and addressed grievances of PV and polysilicon companies in Europe.

Up until now, implementation of the deal is still underway and is welcomed by the industry, companies and consumers. As for the global issue of steel production, Iencourage its proper settlement through enhanced cooperation among companies, industries and the government. Thank you.

Guo Weimin:

Thank you, Minister Gao. Minister Gao has given us a relatively detailed introduction on China's foreign trade, consumption and the building of free trade zones. You can also ask questions on routine news briefings held by the Ministry of Commerce. Thank you for coming. This is the end of today's conference.