A dozen senators call for crackdown on Chinese steel

A bipartisan group of a dozen senators on Monday called on the Obama administration to ratchet up pressure on China to stem the excess supply of steel flowing into the United States.

Ohio Sens. Sherrod Brown (D) and Rob Portman (R) spearheaded the letter to President Obama urging the White House to crack down on Beijing’s lack of compliance in reducing total steel production capacity.

{mosads}“We urge the administration to consider all options for increasing China’s compliance with its international trade obligations, including a potential case brought with our allies at the World Trade Organization and a pause of other trade negotiations with China, such as the Bilateral Investment Treaty talk,” the 12 senators wrote. 

While China has made multiple commitments to reduce its steel capacity, Beijing has not yet taken permanent steps to reduce production, which lawmakers argue is hurting the U.S. steel industry. 

“Diplomatic pressure, even if made with our allies, has not been sufficient to change government subsidy policies, state-owned enterprise involvement in the market and access to free capital that allows unprofitable steel companies to pump excess steel products into the market,” the senators wrote.  

“Only if we incorporate strong enforcement measures into our strategy to reduce excess global capacity will U.S. steel companies and steelworkers get the relief they need,” they wrote.

The letter also was signed by Sens. Jeff Sessions (R-Ala.), John Boozman (R-Ark.), Joe Donnelly (D-Ind.), Amy Klobuchar (D-Minn.), Richard Burr (R-N.C.), Al Franken (D-Minn.), Bob Casey Jr. (D-Pa.), James Inhofe (R-Okla.), Shelley Moore Capito (R-W.Va.), and Charles Schumer (D-N.Y.).