With just 15 years subverting global iron and steel industry in China

In the eighth round, held in Beijing from June 6 to 7th Sino-US strategic and economic dialogue, Chinese and United States officials on the Fed's decision-making process to the South China Sea dispute and other advanced communication and discussion. But China's "overcapacity" is still one of the most important issues Online Sourcing China sourcing.

United States Treasury Secretary Jack Lew (Jack Lew) on Monday (June 6), said in a statement the issue as "distorted" and "destruction", he thinks cutting capacity is crucial for the global market, China.

This is because, in order to sustain China's GDP growth and employment of citizens, some factories in China already produces more steel, solar panels and other merchandise, and exceeded the expectations and needs of the world.

Widespread strikes and slowing domestic economic growth to China local pressure on officials to keep the factories going, while China's leaders have pledged to cut capacity and streamlining of millions of workers. These factories (factories to cut capacity) are mostly State-owned, which means they are subsidized by the Government, the decision is not market-oriented.

As the market is flooded with cheap Chinese goods--there is nothing more obvious than the steel industry, the industry outside China to bring the net effect of the destruction, they have massive layoffs and factory closures.

China's iron and steel industry takes off

In the 1990-2014 years, China's economy advances, in mass of infrastructure expansion and urbanization accelerated at the same time, demand for steel is growing. Therefore, crude steel output soared by more than 12 times. According to the world steel Association, China's steel output accounts for about half of the total in the world. Can be clearly seen in the following figure Guangzhou Yaxiang Electronic Technology, worthy of attention is China's steel output and growth trends of international share almost identical, even production in 2015, for the first time in 35 years, its share is still growing.