Overcoming the second major steel crisis

Today, advanced economies blame China for steel overcapacity. Yet, four decades ago the United States and Europe were the ones that opted for bad policies, which China is seeking to transcend.

At the G20 Summit in Hangzhou, some world leaders criticized China for its steel overcapacity. Before the summit, US lawmakers, and trade unions and associations had urged President Barack Obama to blame China's trade practices for US mill closures and unemployment and to stress the need for "aggressive enforcement of US trade remedy laws".

In Brussels, European Commission President Jean-Claude Juncker echoed US concerns. In Canada, steelworkers and producers urged Prime Minister Justin Trudeau to push China for the same reasons. In Japan, Prime Minister Shinzo Abe called for structural reforms to address China's steel overcapacity.