China's trade competitiveness in the steel industry after 15 years of its membership in the WTO

Abstract

Currently, the overcapacity in the world steel market has an implication for the world steel trade. China is the leading steel producer and exporter of steel products in the world. However, its foreign trade is usually followed by unfair trade practices. In connection with the country's membership in the WTO and the expiration of the 15-year term for considering China as a non-market economy in terms of dumping, the issue of the Chinese steel trade gains significance. The paper is focused on the Chinese steel exports in the period 2001-2016. The object of the paper is, firstly, to show the key legal facts connected with China's membership in the WTO with regard to steel trade, and, secondly, to find out the changes in China's trade competitiveness in steel products that occurred during 15 years after its entrance into the WTO. The trade analysis was carried out by using the Revealed Comparative Advantage (RCA) index. The results of the analysis showed that the exports of articles of iron and steel recorded a higher value of the RCA index and were usually higher than the exports of iron and steel. However, a more detailed analysis showed the differences in China's trade competitiveness with respect to steel products as well as time. China's competitiveness in steel trade raises doubts as to whether it is really fair trade supported by the WTO.