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5 years ago, China lags behind with other countries when it comes to steel production. Due to manufacturing and electricity, it consumes a lot of steel. However, recent capitalization in its two premier steel manufacturing companies have made China as one of the world’s top producer of stainless steel considering that two decades ago, this market was dominated mainly by USA and Japan. Also, China was one of the biggest consumers of stainless steel that relied on importing its steel from the aforementioned countries.

Other developed countries view the progressive growth of China’s steel industry as a matter of grave concern. The European bloc was the first who felt threatened by this so they issued a 24% tax on imported steel products from China, probably making Marco Polo turn in his grave, according to a newspaper report. The European local steel industries claim that the imported steel rods from China have a devastating effect on them. And, as a retaliation, China imposed taxes on Russian and American steel imports. Apparently, China is now a big player in the world due to its massive growth in the steel industry.

There are two main reason why China has a big advantage over its competitors in the steel industry, they have unlimited human capital and their capital expenditures are affordable compared to that of other countries. Production cost is cut by 40% in China compared to that of European countries due to low power costs. Perhaps this is why China’s steel are more affordable compared to the ones produced by Western manufacturers. However, China still imports from other countries steel like ores and other types for its power plants. Better check first with the local trade industry for any trade regulations and tariffs if one is interested in importing steel from China. It is to one’s benefit to heed the advice from import specialists when it comes to China imports as to avoid any illegal implications.

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