Update | Blame game: China hits back at US jabs over excess steel production
China is being criticised for the result of an investment spree that it was praised for just a few years ago, Finance Minister Lou Jiwei says
China hit back on Monday at US criticism over its excessive steel capacity, saying it was serious about the issue but could not simply order cuts in an industry in which private companies held a big stake.
During the China-US Strategic and Economic Dialogue in Beijing, US Treasury Secretary Jack Lew called on China to cut overcapacity, which was “damaging and distorting” global markets.
Finance Minister Lou Jiwei said his US peers had been expected to raise the issue, and attributed the issue to “domestic political and employment pressure”.
He also signalled a reversal in attitude in the West towards China.
“China contributed over half of the global economic growth between 2009 and 2011 via infrastructure investment, which brought the accumulation of excessive capacity such as in coal and steel,” Lou said.
“At the time the world was applauding China [for its contribution],” Lou said, adding that Time magazine selected Chinese migrant workers as its “Person of the Year” in 2009.