U.S.-China Economic And Security Review Commission: 19,000 U.S. Steel And Iron Jobs At Risk Because Of Chinese Overcapacity
In its 2016 report to Congress released last week, the U.S.-China Economic and Security Review Commission, which was created by Congress in 2000 to monitor and investigate the national security implications of the bilateral trade and economic relationship between the United States and China, outlined the negative effects of Chinese steel overcapacity. The commission noted U.S. steel producers “posted net losses of $1.43 billion in the fourth quarter of 2015 and $233 million in the first quarter of 2016.”
The commission also said that, even though the U.S. International Trade Commission imposed “new tariffs on Chinese steel dumping in 2016, many dominant U.S. steelmakers have still been forced to shutter capacity and lay off employees, with as many as 19,000 U.S. steel and iron workers facing layoffs as a result of Chinese overcapacity.”
The report warned that, if China is granted market economic status by the World Trade Organization in December 2016, “dumping margins for antidumping cases will be significantly reduced, removing an important tool U.S. businesses rely on to limit losses taken from price distortions in China’s economy.” As a reminder, this is why, as part of the Manufacturers for Trade Enforcement coalition, the Metals Service Center Institute (MSCI) is working to oppose China’s ascension to market economy status. Check out the latest on these efforts at the MTE website.