China in metal industry Essay Example | Topics and Well Written Essays - 500 words

China in metal industry - Essay Example of China’s metal industry was under the State Owned Enterprises (SOEs) where the key SOEs worked under the policies of the central government and the local SOEs were under the influence of the provincial government. China’s membership in the WTO had posed several challenges for the country considering the weaknesses in comparison to other countries in the world. However the country depended on mergers and acquisitions of steel companies but doubts still persisted as to whether the country would be able to compete in the international market (Hu & Ping, n.d., pp.2-3). The Chinese metal industry has been found to violate several commitments of the WTO. Violating the norms, the Chinese industry has not stopped its ownership and control over the production of steel. This has been mostly achieved with the intervention of the government that plays a significant role in the decision making even after China joining the WTO. In fact after joining the WTO, the intervention of the government has increased contrary to the commitments of the WTO. Violations have also been observed in the treatment and providence of the SOEs (Metals and Mining Chinese Steel Industry, 2011). Slowdown of growth in the Chinese market may bring concerns over the demands of steel along with other products. The LME (London Metal Exchange) realizing the state of the China metal industry decided to spread out its warehouse set-up into China that it considers as the largest user of base metals together with copper. This has been thought to bring in benefits for both the Chinese industry as well as the LME (Sim & Li, 2012). China has proved to be a leading producer of rare earths, tungsten and molybdenum in the world and over the last two years the country has imposed strict taxes over the exports of these elements leading to price rises (Rare Earths, 2012). China is also the largest consumer of copper, aluminium, and zinc, in the world and plans to limit new aluminium merging base metal