The US is considering a steel trade with China with increased tariffs on imports. This can be a huge deal for the US when settled knowing that China is the largest producer of steel in the world. Also, China exports the biggest amount of the production all over. The supply that China has provided is approximately 74 thousand tonnes, only having around 2% exported to the US, in May alone. As a matter of fact, only a small portion of China’s exports actually reach the US. The US data on imports state that there is a relevant amount of imported steel however, it is definitely not from the exports of China. President Trump wants to develop the steel industry in the US and a more efficient solution is importing it from countries that are closer in the area such as Canada and Mexico. Likewise, there are other bigger suppliers from Asia aside from China such as Japan, India, and Taiwan among others. The particular industry in the US may have some challenges but it definitely has a minimal contribution from the imported steel from China.
Additionally, China is also facing challenges in the production of steel for other markets. The world’s need for steel is quite demanding and China’s steelmakers account for almost half of what is supplied all over. Although there is a huge amount of steel being manufactured, no excess is put to waste as the market is also performing well with the prices. The selling prices may have a percentage of the surge but the investors do not hesitate to continue business deals. It attracts more opportunities since the growth in performance of China is justified. Furthermore, China’s economy is also reaping the benefits due to exceeding market expectations and continuous increase in demand. The steelmakers in China has well adapted with the needed target of steel that is needed to be produced. Also, the country has invested in more plants and has more efficient processes within it. Different countries such as the US may call for unfair competition with China but as long as China is capable of delivering steel to more than 50% of the world, the arguments will be difficult to sustain. China is important in the market of steel since the country is able to provide the import needs of the others and continues to be successful in the industry.
Manufacturing and trade are not new for China and the US. Both have already been in long term bilateral trade relations which involved different products in providing for different industries. Even decades ago, both have had ongoing import and exports items but one major event changed how transactions were done. Violent soldiers from Japan intruded a Safety Zone in China and the Rape of Nanking in China happened where civilians were affected, both Americans and Chinese. After which, the US helped China to recover from the effects of the war. This corresponds to the difficulty to rise from an economic turmoil as well as supporting the needs of the people during that time. With the support of the US, China was able to prioritize the most important aspects of survival for their people. Eventually, China was able to stand on their own and up to now, the country is still considered developing.
The US may be experiencing challenges in their steel industry by having a competitive market. However, China is not to be blamed as to how their national security is being threatened by the limited imported products. Tariffs and other policies are hoped to protect their interest but in the case of the long battle to ensure the steel industry, the US must take how China is working to improve and dominate the worldwide market.