• Q: What is China’s problem that it is exporting to India?
• A: China has an overcapacity issue in its steel industry due to low demand and a downturn in the real estate sector. This has led China to export excess steel, as it produces around half of the world’s supply.
• Q: How is China exporting its problem to India?
• A: China is dumping low-priced steel into India, where there is strong demand. The steel is heavily subsidized by the Chinese government, making it cheaper than domestic products and preventing Indian steelmakers from expanding.
• Q: What is the impact on Indian steelmakers?
• A: Indian steelmakers are struggling to compete with the low prices of Chinese steel. As a result, there has been a decline in domestic steel production, and India has become a net importer of steel.
• Q: What is the Indian government doing to address the issue?
• A: The Indian government is investigating the situation and considering extending duties on cheaper steel imports from China and Vietnam. The Directorate General of Trade Remedies (DGTR) has proposed extending countervailing duties on welded stainless steel pipes and tubes from these countries.
• Q: What is the global impact of China’s steel exports?
• A: China’s steel exports have caused trade tensions worldwide. Countries like the US, Brazil, and Chile have imposed tariffs or other measures to manage the surge in imports. The US has specifically targeted measures to prevent China from circumventing tariffs through third countries.
• Q: Why are Indian steelmakers not competitive with Chinese steelmakers?
• A: Indian steelmakers lack the economies of scale, subsidies, and technological advancements that Chinese producers have. Despite protective duties, Indian steelmakers have not been able to significantly improve their competitiveness in the global market.
SRIRAM’s
Share:
Get a call back
Fill the below form to get free counselling for UPSC Civil Services exam preparation
