The European Union (EU) Chamber of Commerce has expressed concern over China’s industrial overcapacity, particularly in the steel sector, saying it pose an increasing threat to European economies.
EU Chamber Head, Joerg Wuttke, disclosed this on Monday in Beijing ahead of the release of a study on the China’s capacity. He said study has shown that China has been accumulating machinery and manpower faster than demand has been growing in recent years.
The official said the report showed that the overcapacity in China’s steel sector rose from 132 million tons in 2008 to 327 million tons in 2014.
Wuttke said the excess led to China offloading its steel at dumping prices on the international market.
He stressed that Chinese authorities need to address the problem more urgently and the protectionism of local employment and business needs to be broken down.
The European Commission this month announced provisional anti-dumping duties on cold-rolled flat steel from China and Russia, and an investigation into the imports of seamless pipes, heavy plates and hot-rolled flat steel from China.
The EU earlier imposed a slew of anti-dumping and anti-subsidy duties on Chinese products ranging from solar panels to ceramic tiles and ironing boards.
The bloc applies measures to China on the basis of it not being a market economy.
It was due to review that status by the end of the year, potentially changing the way it calculates whether Chinese imports are fairly priced.