China Implements Steel Export Licence to Tackle Trade Tensions

China's new export licence for steel products, set for 2026, aims to regulate exports amid worldwide trade tensions. Despite a rise in export volumes, the value has decreased, prompting this regulatory move. The licence system aligns with WTO rules but does not limit export volumes, seeking to mitigate international trade frictions.

China is set to introduce an export licence system for approximately 300 steel products in 2026, as confirmed by the country's commerce ministry. Officials highlighted that this measure is consistent with World Trade Organization (WTO) regulations, aiming for better monitoring of steel exports without capping volume shipments.

The world's foremost steel producer, China, has observed a significant uptick in steel exports post-pandemic, despite various protective trade measures implemented by other nations. The surge in export volume, which has not corresponded with an increase in value, has incited numerous global trade controversies.

Data reveals a year-on-year jump of 6.7% in steel exports, hitting a record 107.72 million metric tons, even as the financial return dipped by 2.1%. The licences, active for six months within a calendar year, are intended for enhanced oversight and will be applicable for specified trades up to 12 times during their validity period.