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BOTH China and the United States recognized that steel overcapacity is a global issue that requires a global solution, a senior Chinese official said in Washington on Wednesday.

steel glut

At a press briefing after the conclusion of the first China-US Comprehensive Economic Dialogue in Washington DC on Wednesday, Chinese Vice Minister of Finance Zhu Guangyao said the two sides discussed the issue of steel overcapacity during the one-day high-level economic dialog.

China shared the same view with the United States that steel overcapacity is a global issue, which requires a global collective response, Zhu said, adding China also emphasized that the excess steel capacity was a result of sluggish global economic recovery.

Meanwhile, the Chinese delegation told the US side that China had actively taken measures to cut steel overcapacity, Zhu said, citing China’s plans to reduce steel capacity by 100 million to 150 million tons from 2016 to 2020.

As the world’s two largest economies and co-chairs of the global forum on steel excess capacity, China and the US have kept policy dialog and communication regarding the steel glut, Zhu said, noting G20 leaders agreed to set up the forum at last year’s Hangzhou summit.