Zhengda (Tianjin) Steel Development Co., Ltd. | Policy Focus
Interpreting China’s 2025 Steel Trade Policies: Stabilizing Supply Chains, Strengthening Foundations, and Pioneering Open Strategies
— Leveraging the "Dual Circulation" Strategy to Navigate Global Trade Shifts and Drive High-Quality Industry Development
1. U.S.-China Tariff Escalation
Effective April 10, 2025, China will impose an additional 34% tariff on all U.S.-origin imports, a direct response to unilateral U.S. steel and aluminum tariffs. This move aims to safeguard domestic industrial chains and balance trade interests.
Semiconductor Sector: Following the U.S.’s 50% tariff on Chinese semiconductors, China’s countermeasures will accelerate domestic substitution in critical technology sectors.
2. Indirect Export Resilience
While direct steel exports to the U.S. account for only 0.8% of total exports (890,000 metric tons in 2024), indirect exports via third countries (e.g., Vietnam, Mexico) face risks. The government urges firms to diversify markets, prioritizing Belt and Road Initiative (BRI) partners. In 2024, 75.28 million metric tons (68% of total exports) were shipped to Asian markets.
1. Crude Steel Production Controls
Under the 2025 National Economic and Social Development Plan, China will continue to regulate crude steel output, targeting a 5% reduction from 2024 levels to curb overcapacity. Policies emphasize phasing out obsolete facilities and accelerating green transition.
2. Green Steel Transition
Hydrogen-based steelmaking and short-process electric arc furnace technologies receive policy incentives. The newly launched "GreenSteel" certification offers tax breaks and export priority for carbon-neutral products, aligning with global decarbonization trends.
1. Real Estate and Infrastructure Revival
Q1 2025 saw over 20% YoY growth in new home sales across major cities, with land premiums hitting post-2021 highs. Relaxed property purchase restrictions and cost reductions aim to boost construction steel demand.
Special bonds and treasury funds will prioritize new infrastructure and urban renewal projects, driving 3–5% growth in domestic steel consumption.
2. Advanced Manufacturing Support
Targeted subsidies and R&D incentives focus on high-strength steel, nuclear-grade seamless pipes, and other premium materials for EVs and high-end equipment. These products now qualify for the "First Set" policy, covering up to 30% of R&D costs.
1. Overseas Production Bases
Tax incentives and risk compensation funds encourage steelmakers to establish plants in Southeast Asia and the Middle East. For example, Panhua Group is building a 1-million-ton facility in the Philippines to bypass tariff barriers.
Vietnam and Indonesia emerge as key markets, with firms like Huamao Technology using overseas bases (e.g., Vietnam) to indirectly supply North America.
2. Regional Collaboration
At the 2025 Asian Steel Trade Summit, the China Iron and Steel Association proposed forming an Asian Steel Trade Alliance to share capacity data and combat protectionism, backed by India, Iran, and other emerging economies.
1. Trade Remedy Preparedness
Anticipating 40+ anti-dumping/countervailing (AD/CVD) cases in 2025 (up from 33 in 2024), the Ministry of Commerce launched a rapid response platform offering legal support and compliance training.
2. Digital Supply Chains
Blockchain traceability systems (e.g., "SteelLink") enhance transparency from raw materials to logistics, cutting compliance risks and boosting order efficiency by 40%.
China’s 2025 steel exports are projected to decline to 80 million metric tons (down ~30% YoY), offset by domestic demand and emerging markets. Policy reserves, including interest rate cuts and equipment upgrade loans, remain on standby.
Zhengda’s Initiatives:
Launching zero-carbon galvanized steel product lines
Expanding overseas warehouses in Mexico and Vietnam
Deepening BRI partnerships for cross-border supply chain integration
Zhengda (Tianjin) Steel Development Co., Ltd.
April 28, 2025
