China rejects EU accusation over steel overcapacity

May 11, 2016 3:53 am 

BEIJING, May 10 — china on Tuesday refuted accusation by an EU diplomat that its inefficiency in decapacity of steel industry harmed European manufacturers.

"We hope anyone who would like to make such remarks could make clear the facts and respect facts," said Foreign Ministry spokesperson Lu Kang, while commenting the words by European Union's Ambassador to china Hans Dietmar Schweisgut.

Schweisgut said on Monday that Beijing was not doing enough to address overcapacity in its steel industry that has hit European manufacturers hard.

"China is addressing the steel industry's overcapacity with greater determination, earlier actions and more practical solutions than any other country," Lu said.

Lu told the daily press briefing that the government has listed steel industry as a priority in reducing overcapacity. Instead of offering subsidies, China is the only country that has imposed restrictions on steel exports.

According to him, China had reduced steel capacity by 90 million tons in the past five years, almost doubling the original plan of 48 million tonnes.

He noted that steel industry's overcapacity is a global problem rooted in weak demand caused by the global economic depression. The fundamental settlement is to push for a steady and sustainable recovery of the world economy, which requires joint efforts from all countries instead of figure-pointing.

"EU imported 32 million tonne of steel in 2015, only one fifth of which is from China. It does not make sense to ascribe the dilemma of European manufacturers to China," Lu said. (PNA/Xinhua)

RMA/EDS

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