US targets China’s steel capacity at G20 days after Xi’s state visit

In the days following Chinese President Xi Jinping's state visit to the United States, the US Trade Representative, Jamieson Greer, proposed a new global framework aimed at addressing excessive steel production capacity. This framework was discussed during the Global Forum on Steel Excess Capacity (GFSEC) in Milwaukee, Wisconsin.

Greer emphasized that the United States has implemented robust measures and suggested that other countries should follow suit. He noted that while individual countries may take their own actions, the collective effort would be crucial. The GFSEC adopted this framework, which calls for reducing and eliminating market-distorting subsidies and sharing information on non-market policies and practices in non-member countries.

Greer highlighted that the US steel industry is experiencing a "renaissance" due to various factors such as tariffs, trade deals, favorable tax treatment, improved energy policy, and the entrepreneurial spirit. The GFSEC, comprising 28 members, focuses on tackling excess steel capacity and includes countries like Canada, Mexico, Japan, South Korea, France, and Germany, although China is not a member.

China, the world's largest steelmaker, has faced scrutiny over its steel production and exports over the past two decades, with multiple countries imposing tariffs and anti-dumping duties on Chinese steel imports. The US Trade Representative's call for global action stems from the US administration's expanded tariffs on steel imports from various countries, including China, Canada, Mexico, and Brazil.

Since President Trump's return to the White House, the US has imposed additional levies on numerous trading partners, including China. Despite maintaining a temporary trade agreement with China, the administration continues to use its G20 presidency to highlight China's global trade surplus and rally members against what it considers Beijing's "excessive imbalances."