China and US welcomes a potential establishment of Global Forum on excess capacity

 

By Zhuang Xueya from the People’s Daily

 

On September 3, 2016, President Xi Jinping of the People’s Republic of China held meetings with President Barack Obama of the United States of America during the G20 Hangzhou Summit. The two sides had reached a wide range of important consensus, including strengthening cooperation on excess capacity in steel and other industries.

According to the Chinese foreign ministry officials, China and the United States recognize that structural problems, including excess capacity in some industries, exacerbated by a weak global economic recovery and depressed market demand, have caused a negative impact on trade and workers. Both countries recognize that excess capacity in steel and other industries is a global issue which requires collective responses. Both sides recognize that subsidies and other types of support from governments or government-sponsored institutions can cause market distortions and contribute to global excess capacity and therefore require attention. The two sides commit to enhance communication and cooperation, and are committed to take effective steps to address the challenges so as to enhance market function and encourage adjustments.

 

In this regard, China and the United States welcome the potential establishment of a Global Forum, with active participation of G-20 members and interested OECD members, as a cooperative platform for dialogue and information-sharing on global capacity developments and on policies and support measures taken by governments, to be facilitated by the OECD Secretariat.

 

The two sides specifically stress the excess capacity of the electrolytic aluminum industry due to a weak global economic recovery and depressed market demand. The two countries are committed to work together to address the global electrolytic aluminum excess capacity.