Washington DC, 28 July 2009 

A Steel Industry Perspective: The American Iron and Steel Institute (AISI) and the Steel Manufacturers Association (SMA) released today a study describing the negative impact of China’s economic policies on the U.S. and world economies.

The study examines in detail the policies China has pursued to give its exports an artificial advantage in international competition, including manipulating the value of its currency, subsidizing export-oriented industries, and failing to enforce environmental laws.  The study also analyzes the effect these policies have had on the United States.  While the study uses the steel industry as an example of China’s policies, its conclusions are generally applicable to the U.S. manufacturing sector.       

“The study shows that China is violating the basic rules of the international trading system,” said Thomas J. Gibson, president and CEO of AISI. 

“International trade is supposed to be based on comparative advantage and genuine factors of efficiency and competitiveness.  What China is doing is more like old-fashioned 18th century mercantilism.

Through its policies of government ownership and subsidies, weak and inadequately enforced environmental rules and its manipulation of currency, border measures and raw material markets, the government of China has provided Chinese exports a tremendous artificial edge in world markets, at the expense of the United States and other countries.

The study is being released in advance of the upcoming meeting of the U.S.-China Economic and Security Review Commission, which periodically reviews issues affecting the two countries.

www.steel.org

Attachments:

RebalancingUS-ChinaRelationship.pdf

684 Kb