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AISI Endorses Conclusions of U.S-China Report
Nov 22, 2006
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The American Iron and Steel Institute (AISI) endorsed key trade and competitiveness-related conclusions of the November 2006 Annual Report to Congress of the U.S.-China Economic and Security Review Commission.

Andrew G. Sharkey, III, AISI president and CEO, said: “We agree that China has failed to comply with many of its World Trade Organization (WTO) obligations, 5 years after attaining WTO membership, and we endorse the key Commission conclusions that:

  • China’s industrial policy employs a wide variety of tools to promote favored industries;
  • China uses a range of subsidies to encourage the manufacture of goods meant for export over the manufacture of goods meant for domestic consumption;
  • China artificially prevents the value of its currency from rising with the economy and maintains an export-led trade policy;
  • Decisions by the central government meant to comply with WTO rules sometimes are ignored in the provinces, and the regulations established in Beijing are not necessarily enforced elsewhere.”

    With regard to China’s energy policy, Sharkey noted that “AISI agrees with the Commission that:
  • China’s energy strategy could substantially affect U.S. energy security;
  • China’s energy policies are distorting markets and destabilizing regions;
  • China’s energy use policies and the resulting air pollution are adversely affecting the air quality of the western United States;
  • Some U.S. cooperative efforts with China on energy efficiency are useful and should continue.”

    Sharkey said that, "In view of these and other important conclusions contained within this latest report, which are threatening significant long-term injury to the United States steel industry and the U.S. manufacturing base at large, Sharkey urged the Administration “to review carefully the findings and recommendations of the November 2006 U.S-China Commission Report and to take action in the national interest where warranted.”

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