Uneasy China tries to appease U.S. concerns on its export of cheap steel

The Trump Administration has twice rejected Beijing appeal to cut steel overcapacity by 150 million tonnes.

The Financial Times has reported citing sources familiar with the matter, U.S. President Donald Trump has rejected a Chinese proposal to cut steel overcapacity last month.

Beijing is keen to appease U.S. trade concerns as it tries to find ways to minimize U.S. investigations into its trade policy and practices.

Beijing has proposed cutting steel overcapacity by 150 million tonnes by 2022. The deal was struck down twice rejected by Trump, who has instead urged his advisers to find ways to impose tariffs on imports from China, reported the Financial Times citing the sources.

White House’s spokeswoman, Natalie Strom has declined to comment on the “purported internal discussions” between the president and his cabinet members.

Trump’s actions come in the wake of U.S. steel industry executives appealing to Trump for immediate import restrictions on cheap Chinese steel, saying the U.S. steel industry was suffering from the consequences of government inaction.

As per the American Iron and Steel Institute, total steel imports to the U.S. have risen by 22%, from the same period a year ago.

China’s hawkish Global Times has stated that in the near future it expects growing trade friction between the Untied States and Beijing, which China should prepare for.

“China should not overly focus on the Trump administration’s actions,” reads its online editorial. “Instead, it should begin drafting retaliatory measures against the United States so as to gain an upper hand.”

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