AISI Comments on China as a Non-Market Economy

The American Iron and Steel Institute (AISI) commented on a report released earlier today by the Center for American Progress (CAP) regarding China’s Economic Reform. The AISI stated that CAP’s article indicates that economic reforms announced by Chinese leadership last fall will do nothing to mitigate China’s state-ownership and control over key industrial sectors, including steel.

Thomas J. Gibson, president and CEO of the AISI, stated that the Chinese government’s control of key aspects in the Chinese economy is leading to “significant economic distortions, including a massive build-up in excess steelmaking capacity in China.” Gibson continued to say that, “the state-run economy prevents normal market forces from operating in China and produces harmful effects in global markets. Private companies in the United States and elsewhere can’t compete with foreign governments, and the impact has been seen across the steel industry. Despite the rhetoric from the Chinese government last fall, today’s report reaffirms that these announcements won’t move the needle toward a market economy in China.”