China's surge as steel exporter linked to trade-distorting energy subsidies

摘要

A comprehensive report released January 8 highlights the massive increase in China's trade-distorting energy subsidies to its steel industry. This correlates to a surge in steel production there that took China from being a net importer of steel in 2005 to being the world's largest exporter by volume in 2006. Though subsidies fell in 2002 and 2003 - following China's admission to the World Trade Organization (WTO) in 2001 - subsidies jumped exponentially from 2004-2007. In fact, notes the report, from 2000 to 2006, China's total energy subsidies to the steel industry grew by 1,365 percent. In 2007, energy subsidies are estimated at USD15.7 billion, for a 3,800-percent increase since 2000.