China has the world’s largest steel industry. Indeed, in 2005, China made more steel than the next four largest producers combined. From 2000 to 2005, China’s steel production increased by over 170 percent, as the Chinese industry added capacity at a furious rate. Between 1998 and 2005, China’s steel exports more than quadrupled, as China established itself as one of the world’s leading exporters. This explosive growth in both production and exports would not have been possible without the support of the Chinese government.Like the old Soviet-era of "amateur" athletics (remember Lake Placid in 1980? The Miracle on Ice?), Chinese "companies" are really just extension of the government.
Monday, February 02, 2009
Angry Bear has an excellent summary of the ongoing trade war over steel we're having with China. The article details the nature of a command economy and the control over critical industry. Well worth the read.