Chinese steel exports could come under heavier regulation
China's top economic planning agency said that the country may impose regulations to significantly stem the flow of exported steel, the state-owned Xinhua news agency reported Monday.
Hu Chunli, a senior official with China's National Development and Reform Commission, said that options on the table include requiring steel exporters to obtain a special license and restricting steel projects in the processing sector.
Steel exports came down in August (9.4 percent from July) but have grown 5.8 percent for the year. That's not going to satisfy Beijing, which is trying to simultaneously stem the flow of raw materials out of the country while also better managing China's trade imbalance with the West.
The regulations are needed because Chinese exporters won't voluntarily cut off a source of revenue, the economic official explained to Xinhua.
'As long as the steel export generates more profit, Chinese enterprises will still expand their exports,' Hu said.
Chinese steel exports could come under heavier regulation
