 |
| Steel |
China has introduced new steel export regulations aimed at ensuring compliance with tax legislation and preventing low-priced steel exports. The new measures, issued jointly by five key government departments, are designed to strengthen export management and tax compliance, as reported by SteelHome.
Stricter Customs Declarations and Tax Compliance
A major aspect of the new policy is the requirement for a tax registration check during customs declarations, effectively eliminating tax evasion. Additionally, the regulations enhance supervision over company closures, addressing a loophole where firms would quickly register and close to evade scrutiny. Companies engaging in fraudulent export activities now face severe penalties, including potential criminal liability.
Addressing Concerns Over Low-Priced Exports
China's steel export practices have been a point of contention in global trade. Since the abolition of tax rebates on steel exports in 2021, many exporters have utilized "proxy exports" to circumvent regulations, leading to lower export prices and concerns about dumping from international trade partners. These new policies aim to tighten oversight, ensuring stricter compliance and transparency while preventing price wars and optimizing China’s steel export structure.
Industry Restructuring and Production Cuts
In early March, China announced plans to restructure its steel industry by reducing production. While specific details were not disclosed, market analysts predict that steel output could be reduced by as much as 50 million tons per year. This move aligns with China’s broader strategy to enhance its position in high-quality steel markets while addressing overcapacity and environmental concerns.
Tags
STEEL
