Posted on 10 Mar 2023
Zhao Minge, chairman of Shougang Group, China's sixth-largest integrated steelmaker, has suggested the country restore tax rebates on some steel products to support the export of high-end, high value-added steel items, according to a report by industry media China Metallurgical News (CMN).
Zhao is also a National People's Congress (NPC) deputy and among the 5,000 high-level delegates attending this week's 'Two Sessions' political meetings convening in Beijing.
In addition to ensuring the balance between domestic steel supply and demand to meet the needs of national economic development, Chinese steel products should maintain a certain share in overseas markets to improve their competitiveness globally, Zhao is quoted as telling delegates gathered in the capital.
"Chinese steel exporters remain at a disadvantage in the competitive international marketplace and face the risk of being forced out of the high-end steel industry chain abroad as their export costs have increased with the removal of tax rebates on steel exports," Zhao pointed out.
In May and August 2021, China's central government removed the tax rebates on exports of 169 steel products in two batches, and starting from August 1 that year, all steel products exported from China ceased to enjoy any tax rebates, as Mysteel Global reported.
Japan and South Korea are the top competitors of China's steel exports in the Asian market, Zhao noted, while exporters from the two countries can enjoy some favourable policies relating to steel exports, he observed. Some targeted measures should be taken for steel exports to boost the high-quality development of the domestic steel industry and foreign trade, he suggested.
In fact, China has already taken some steps to prepare for the optimization and standardization in steel exports, Mysteel Global noted.
For example, effective from January 1 this year, some changes to tariff categories for certain steel products were introduced, specifically under HS codes 7225 and 7227 relating to flats and longs of alloy steel, to meet the future need for trade controls and tariffs, as reported.
The export of high-end steel products is encouraged in China. "Although there are no concrete preferential measures (for high-end steel exports) as of now, the changes in tariff categories have laid a foundation for policy adjustment in the future," another market watcher in Beijing said.
Source:Mysteel Global
