China says financial crisis caused weakening global steel demand

Beijing says steel overcapacity is a global challenge, which needs the shared efforts of the international community to tackle it at the High-Level Symposium on Excess Capacity and Structural Adjustment in the Steel Sector on Monday in Brussels. Zhang Ji, assistant minister of Commerce, is heading a delegation to the event organized by Belgian government and OECD. [Photo provided to chinadaily.com.cn]

China also said that the excess capacity problem currently facing the steel sector is a universal one for all steel-producing countries in the world.

"It is a common challenge that needs to be confronted by all countries together. The shared problem needs to be tackled with shared efforts. Pointing fingers at one another doesn't help solving it," the paper said. "Therefore, we believe that all parties should take part in the Symposium in the spirit of cooperation and discuss excess capacity issue in the steel sector constructively."

China is now making tremendous efforts and considerable sacrifices to cut its overcapacity. During the 12th Five-Year Plan period from 2011-2015, China shut down outdated facilities with total production capacity of over 90 million tons; in the coming five years, China will further reduce crude steel capacity by 100 million to 150 million tons, involving the reemployment of 500,000 people.

"The measures we have taken and the effects they produce have been fully recognized and appreciated by many countries," Chinese government said in the paper.

China hopes more countries would take proactive measures in line with their respective national conditions and stage of development, jointly contributing to resolving excess capacity in the steel industry, according to the position paper.

China believes that countries need to work on both the supply side and the demand side, and vigorously expand the demand to tackle excess capacity.

"China's Belt and Road Initiative set out a vision to strengthen the connectivity and infrastructure development of countries along the route. This has fuelled their demand for steel, and delivered win-win outcomes through social and economic development," the paper was cited as saying.

To contact the reporter: fujing@chinadaily.com.cn