Lew raps China on excess steel production

[BEIJING] US Treasury Secretary Jack Lew called on China Monday to cut excess capacity in sectors such as steel and aluminium, saying such overcapacity had a "distorting and damaging effect on global markets".

His statement came during the Eighth US-China Strategic and Economic Dialogue, a key annual meeting in Beijing focused on ironing out differences over trade and security between the world's two military and economic powers.

China is the world's number one steelmaker, producing more than half of global output, and has been accused of flooding the world market with oversupply sold at below cost in violation of global trade rules.

The practice has had a "distorting and damaging effect on global markets" for steel, as well as others such as aluminium, where China has massive production capabilities, Mr Lew said.

AFP