Steel reactions to China’s subsidy cuts muted [UPDATE]

Nov 30, 2007 | 01:15 PM | Michael Cowden

The domestic steel industry is encouraged, but not entirely satisfied, by news that the Chinese will voluntarily end a dozen subsidy programs challenged by the U.S. government.

"These subsidies represent only the tip of the iceberg when it comes to Chinese government subsidies to industry," the American Iron and Steel Institute said in a statement Friday.

The U.S. industry has repeatedly accused the Chinese government of providing a wide range of domestic subsidies to its steel industry, including equity infusions and debt-to-equity swaps, which steelmakers here say harms U.S. industry.

The World Trade Organization case, by contrast, targeted a small group of export and import substitution subsidies. "Those programs are so obviously illegal it's a mystery why the U.S. didn't go after them 5 years ago," one domestic trade attorney said.....

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