Five years ago, China lags behind with other countries when it comes to steel production. Due to manufacturing and electricity, it consumes a lot of steel. However due to recent funding on two premier steel manufacturing companies, China became one of the world’s top producer of stainless steel, joining the United States and Japan who has been lording the industry for the last twenty years. Also, China was one of the biggest importer of steel from the two countries to address its need for stainless steel.
Because of the progressive growth of China’s steel industry, a lot of developed countries felt threatened by rapid expansion of imported steel from China. The European bloc was the first who felt threatened by this so they issued a 24% tax on imported steel products from China, probably making Marco Polo turn in his grave, according to a newspaper report. The cause of concern from European steel industries is the imported steel rods from China. And, as a retaliation, China imposed taxes on Russian and American steel imports. Apparently, China is now a big player in the world due to its massive growth in the steel industry.
The two main reasons why China holds an advantage over their counterparts is their unlimited supply of manpower and their affordable capital expenditures. Production cost is cut by 40% in China compared to that of European countries due to low power costs. Perhaps this is why China’s steel are more affordable compared to the ones produced by Western manufacturers.
However, China steel imports some forms of steel such as ores and other types of steel needed for power plants. Better check first with the local trade industry for any trade regulations and tariffs if one is interested in importing steel from China. It is also helpful to secure advice from importer specialists in gaining a better understanding of importing steel from China so there would be no legal implications.