While USA adopt rates to protect industry, China bets on technological advances to maintain its global leadership in steel production
The Chinese Iron and Steel Association reported that China’s steel production exceeded 350 million tons in the first quarter, an increase of 6.1% over the same period last year, according to a report by China Central Television (CCTV) on Sunday (11).
Despite the external challenges, the Chinese steel industry continued focusing on internal improvements, strengthening the base for the manufacturing sector as a whole. This scenario contrasts with the US strategy, which tries to revitalize its steel industry through protectionist tariffs.
In March, the US imposed a 25% rate on steel and aluminum imports, significantly affecting the global supply chain. Even under external pressure, the Chinese industry has not interrupted its advance, investing further in technological innovation and downward transition, aiming at a more sustainable and competitive future. By April 20, 141 companies in the sector had already completed updates to reduce emissions, covering a productive capacity of approximately 591 million tons, according to CCTV.
From 1949 to 2023, China’s steel production jumped from 158,000 tons to impressive 1.019 billion tons. Since it exceeded 100 million tons in 1996 and has become the largest global producer, the country has its lead in both production and world consumption.
The advance included the manufacture of specialized and high quality steel mills, coming from basic materials for advanced items, such as Ultrafino Steel “Hand-Border Steel” and Pen Tips Surface Steel, intended for sophisticated technological markets.
While the US focuses on tariffs to protect its outdated productive capacity, China prioritizes technological innovation, eliminating obsolete abilities and promoting updates that drive competitiveness and sustainable development.
This year, the use of recycled materials rather than iron ore in production has already shown significant results, reducing CO₂ emissions by over 67% compared to the traditional method.
In China, external pressures are believed to be converted into internal strengthening. The steel industry, essential for various industries, exemplifies this mindset: its continuous development and innovations in high -value products ensure the stability of the manufacturing sector in a complex international scenario.
Faced with slow global economic growth and commercial tensions, the sector faces external uncertainties. Jiang Wei, Secretary-General of the Chinese Iron and Steel Association, told CCTV that industry is responding with a focus on economic efficiency and quality development to ensure continuous improvement.
The US has opted for a different way: amid international competition, they try to protect their industry with tariffs, which can maintain outdated capabilities and raise steel prices, impacting the entire production chain.
“Tariffs are inflationary by nature and will increase prices for both domestic and imported steel,” PWC partner Earl Simpkins told Reuters. Steel is widely used in various processed products.
The distinct directions adopted by China and the USA will have deep implications in the manufacturing sector. If protectionism or technological innovation will prevail as a driving force of industrial development, only time will say.
With information from Global Times*
Source: https://www.ocafezinho.com/2025/05/11/producao-de-aco-da-china-dispara/
