How China’s Steel Overcapacity Is Crippling Japan’s Economy?
In 2024, Japan’s steel industry faces a significant crisis as it grapples with China’s growing dominance in global steel production. Nippon Steel, Japan’s largest steel producer, is urging the government to impose tariffs on Chinese steel imports, citing anti-dumping practices. The core issue stems from China’s overcapacity and ability to produce steel at lower costs due to cheaper energy and raw materials. While Japan relies heavily on imported iron ore and energy, China’s access to these resources at lower prices gives it a competitive edge.
The situation is exacerbated by a surge in Chinese steel exports, which have increased by over 44% globally and up to 50% in key Asian markets. Japan’s weakened yen and high production costs make it difficult for domestic steelmakers to compete. Additionally, declining demand from sectors like automotive manufacturing—impacted by challenges in the electric vehicle (EV) market—has intensified the crisis.
Nippon Steel fears that an influx of cheaper Chinese steel could destabilize Japan’s domestic market, leading to calls for protective measures. However, imposing tariffs may lead to higher costs in industries such as construction and infrastructure, potentially exacerbating economic instability. This situation reflects a broader pattern among G7 countries, which are increasingly implementing trade barriers against Chinese competition.
The unfolding events highlight the complexities of global trade and the consequences of shifting economic power dynamics. Japan’s response to this crisis will have significant implications not only for its own economy but also for global trade practices and industrial competitiveness in the years to come.
14 Comments
Bien fait pour leur gueule…!
Its the Cheaper energy China got from Russia. Unlike the US lapdogs who boycott Russia and love to buy more expensive energy
Japan has the same disease as Germany. You piss off Russia and Russia cuts off your supply of cheap energy. Japan joined the US and EU to sanction Russia. Russia has restricted energy to Japan so Japan has to get its energy from elsewhere. What is surprising is that while China is showing lower demand because of the housing bubble popping, China continues to build high speed rail, bridges, dams, and other infrastructure, not to mention its overseas rail and infrastructure projects. For Japan, slowing exports, a moriibund domestic market slows demand for steel so it blames China for its problem. China represents 50% of steel imports while South Korea represents 40%. Does that mean that Japan is not cometitive? No blame for South Korea?
China is the largest steel producer in the world but also consumes 92 to 95% of its production withhin China. China also imports specialty steels. That is not overcapacity
The US, Japan and Europe are fighting the very worth of global economics where each country provides what it does best and does not attempt to compete where it does not have an realistic advantage.
dude.. stop this bullcrap narrative its all about cheap labour.. its cheap currency exchange rate.. plus other factors the west can't compete with.. there 's no overcapacity.. you are just repeating the old witch Yellen stupid narrative..
Their overcapacity is crippling everything, including their overcapacity in Engineers is crippling our talking show hosts
I cannot remember Japan showing concern when they had over-capacity in vehicle production. Nor the US and UK and the EU in areas such as weapons, agriculture, engineering goods etc. Now all of a sudden, over capacity becomes an issue with China. Such hypocrisy!
Japan will be rewarded for supporting the US economic policy in containing China. 😆😆😆
Win and lose are the result of competition.
Western, White man just don’t understand, the meaning of the rise of China! The rise of China is through good governance for many decades and the willingness of the people to work hard. China have risen and have established a complete chain of productions which means from mining raw materials, refining raw materials to producing raw materials, to research and producing of final products. In short, China have achieved 100% efficiency in many sectors. But China is more than happy to buy chips from the West but the West will immature and evil intend to suppress China then China work hard to develop their own chips.
Stop the overcapacity clickbaits…
Japan shouldn’t have obeyed America – but then , it is still occupied
Accusing china's overcapacity but in the past, japan and america were leading the manufacture, no one is arguing. Serves you right then.