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 believes that the weakening global demand for steel since the 2008-09 financial crisis is the "fundamental cause" of excess capacity in the steel and related industries, which is a common challenge for the world.

But China's domestic efforts in reducing overcapacity in the related sectors and its Belt and Road Initiative, which is actually helping boost steel consumption, need global cooperation and coordination.

China laid out its position on Monday at the High-Level Symposium on Excess Capacity and Structural Adjustment in the Steel Sector in Brussels.

Zhang Ji, China's assistant minister of Ministry of Commerce, heads a delegation to the talks, organized by Belgian government and OECD.

"The Chinese side believes that since the international financial crisis, economies have suffered a notable slowdown, sluggish recovery, and a decline in infrastructure construction, industrial development and household consumption, leading to weak global demand for steel," according to the position paper.

"This is the fundamental cause of excess capacity in the steel and some other industries," the document said.

Before the international financial crisis in 2008, strong growth of the world economy was conducive to the increase in the production capacity of the global steel industry.

"Any other analysis and judgment on the steel excess capacity will make us lose direction and fail to find a correct solution," the paper was cited as saying.

The Chinese side took the view that the OECD Steel Committee is a forum for global dialogue and communication on steel, and the nature of the session should be a symposium rather than a formal official meeting.