Eu' Anti dumping Charges Against China: Politicizing Internationa Trade
Eu' Anti dumping Charges Against China: Politicizing Internationa Trade
1. The steel industry is a very dynamic one and therefore prone to a lot changes. Which factors on the one hand drive and on the other hand impede these dynamics?
Since the steel industry became a major part of the global market, it saw a lot of changes.
The development of this market could be divided in three main phases;
“The Growth
1
Period” , “the Stalemate Years”, “The Boom Years”. The first phase began in the year 1950 and ended in the year 1973, the second from 1974 to 2001 and the third one from the year
2002 to 2006. At the beginning of the 19th century, the United Kingdom turned out as the market leader. However, in the early 20th century, the United States replaced the UK as leader, until China became the ultimate leader.
Historically seen, the reconstruction phase after the Second World War, created a huge demand in the global steel industry. During this phase, the demand surmounted supply and countries which produced steel had to increase their production capacity. The two oil shocks in the years 1973 and 1979, which affected all the markets, reduced the growth period of the global steel industry.
According to the preparatory readings there are several factors, which drive the dynamics of the steel industry. Historically China had been a main contributor to the drive of the steel industry since the beginning of the century, when the Chinese economy was starting to prosper. A major factor being that the Chinese were investing in their infrastructure so the construction industry was booming, which meant an increasing demand for steel for building.
The low production costs of steel in China also contributed to the drive, due to the fact that there was great labour availability and employment costs were low.
One of the other biggest and most potent factors for the drive of the Chinese steel production were the subsidies from the government. The low
1. The steel industry is a very dynamic one and therefore prone to a lot changes. Which factors on the one hand drive and on the other hand impede these dynamics?
Since the steel industry became a major part of the global market, it saw a lot of changes.
The development of this market could be divided in three main phases;
“The Growth
1
Period” , “the Stalemate Years”, “The Boom Years”. The first phase began in the year 1950 and ended in the year 1973, the second from 1974 to 2001 and the third one from the year
2002 to 2006. At the beginning of the 19th century, the United Kingdom turned out as the market leader. However, in the early 20th century, the United States replaced the UK as leader, until China became the ultimate leader.
Historically seen, the reconstruction phase after the Second World War, created a huge demand in the global steel industry. During this phase, the demand surmounted supply and countries which produced steel had to increase their production capacity. The two oil shocks in the years 1973 and 1979, which affected all the markets, reduced the growth period of the global steel industry.
According to the preparatory readings there are several factors, which drive the dynamics of the steel industry. Historically China had been a main contributor to the drive of the steel industry since the beginning of the century, when the Chinese economy was starting to prosper. A major factor being that the Chinese were investing in their infrastructure so the construction industry was booming, which meant an increasing demand for steel for building.
The low production costs of steel in China also contributed to the drive, due to the fact that there was great labour availability and employment costs were low.
One of the other biggest and most potent factors for the drive of the Chinese steel production were the subsidies from the government. The low