U.K. media reports blame China for the nation's steel industry woes. (Photo : www.scmp.com)
A top steel industry official remarked on Wednesday that China is not to blame for the steel industry issues of the United Kingdom.
The recent job losses in the industry should rather be attributed to the fading steel industry competitiveness, Li Xinchuang, the deputy secretary-general of China Iron and Steel Industry Association, remarked.
Li also noted that it was unfair for the British media to turn a blind eye on China's job creation in the nation. He responded to the U.K. and U.S. reports that the Tata Steel's cutting of over 1,200 jobs can be traced from China's low-priced steel exports.
"It is unreasonable to blame China for Tata Steel's redundancy," Li said.
Statistics from the industry association U.K. Steel show that among the U.K.'s steel requirements, 60 percent comes from imports. Of the said figure, China accounts for about 8 percent.
Chinese news reports claim that the U.K has failed to detail price information or import statistics. In fact, Chinese investments have aided the U.K. in creating around 5,000 jobs for the financial year 2014-15.
Huawei Technologies Co. Ltd., a leading Chinese tech powerhouse, has offered 7,000 direct and indirect jobs in the U.K. since its foray into the British market in 2010.
China has seen the U.K. as its top investment destination in the European Union. The two nations are expected to strike multi-billion-dollar trade and investment agreements to create more employment opportunities.
Li also noted that the current global steel market is weak due to the economic slowdown. Subsequently, it has made competition tougher for players.
The steel industry official emphasized that Chinese steelmakers can deliver top-caliber products and services at competitive prices.
"It is useless to blame China for other competitors' high costs and low efficiency, which cannot solve their essential problems," he stated.
Li added that the main reason for low profits is the high cost of steel firms. "If they can not raise efficiency, they will lose market share," he said.
Meanwhile, Chinese ambassador to the U.K. Liu Xiaoming said in an interview that the U.K. should "make adjustments" to be at par with the changing global economic landscape.
"If you continue to stay with your old, traditional business, you're losing money and opportunities . . . China is making adjustments--why not the U.K.?" Liu said.
