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April 5, 2021

G-7, United States Pledge To Take On China Metals Overcapacity

As Politico reported, trade officials from the G-7 last week issued a statement that “took aim at China” and pledged collective action to address “harmful industrial subsidies” and other market-distorting practices carried out by the country. Specifically, the countries acknowledged that, “not all of our citizens have felt the benefits of trade” and “practices that distort markets and competition lead to decreased efficiency and reduced perceptions of fairness and trust in the system.”

The trade ministers also said they “will discuss the impact market-distorting practices, such as harmful industrial subsidies, including those causing excess capacity in some sectors, are having on our economies and chart a way to address these collectively.” Read the full statement from the G-7 here.

The G-7 statement came the same day that the Office of the U.S. Trade Representative (USTR) released a report that criticized China as the biggest source of global excess capacity for steel, aluminum, and solar energy. The USTR also promised further action “to address these harmful trade practices.”

Politico has more on that report here.