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Tata Steel: David Cameron raises concerns with Xi Jinping Tata Steel: David Cameron raises concerns with Xi Jinping
(about 1 hour later)
David Cameron has raised his concerns about the steel crisis with Chinese President Xi Jinping, Number 10 says.David Cameron has raised his concerns about the steel crisis with Chinese President Xi Jinping, Number 10 says.
During a dinner in Washington on Thursday, Mr Cameron said they needed to work together to tackle over-capacity, his spokeswoman said.During a dinner in Washington on Thursday, Mr Cameron said they needed to work together to tackle over-capacity, his spokeswoman said.
China "dumping" cheap steel on overseas markets is being partly blamed for the problems facing the UK steel industry.China "dumping" cheap steel on overseas markets is being partly blamed for the problems facing the UK steel industry.
It comes as China is to impose import tariffs of up to 46% on some EU steel, including a type made in south Wales.It comes as China is to impose import tariffs of up to 46% on some EU steel, including a type made in south Wales.
The leaders met at the White House during the Nuclear Security Summit in Washington. The government said China imposing duties was "clearly unwelcome", but claimed the UK did not export enough of the steel affected by the tariff "to have much impact".
The prime minister has said every effort is being made to save thousands of steel jobs - but he also warned there were "no guarantees of success". 'No guarantees'
He said nationalisation was "not the right answer" after Tata Steel's decision to sell its loss-making UK plants. The two leaders met at the White House during the Nuclear Security Summit in Washington.
The prime minister has said every effort is being made to save thousands of jobs after Tata Steel's decision to sell its loss-making UK plants - but he also warned there were "no guarantees of success".
Tata Steel UK: What are the options?Tata Steel UK: What are the options?
What's going wrong with Britain's steel industry?What's going wrong with Britain's steel industry?
What next for Tata Steel workers?What next for Tata Steel workers?
Steel v banks - Why they're different when it comes to a government bail-outSteel v banks - Why they're different when it comes to a government bail-out
Tata's UK business - which directly employs 15,000 workers and supports thousands of others - includes plants in Port Talbot, Rotherham, Corby and Shotton.Tata's UK business - which directly employs 15,000 workers and supports thousands of others - includes plants in Port Talbot, Rotherham, Corby and Shotton.
Unions and opposition parties say the government is in "chaos", and want action to save the threatened plants.Unions and opposition parties say the government is in "chaos", and want action to save the threatened plants.
The prime minister's spokeswoman said Mr Cameron "raised concerns about the global steel industry" with President Xi, saying the two countries "needed to work together to tackle the challenges with over-capacity" and that the G20 in China in September could be a good forum to address it. The prime minister's spokeswoman said Mr Cameron "raised concerns about the global steel industry" with President Xi, and said the G20 in China in September could be a good forum to address the issue.
Both the government and the unions are blaming cheap Chinese imports for causing problems in the UK.Both the government and the unions are blaming cheap Chinese imports for causing problems in the UK.
In 2013, the UK produced 13 million tonnes of steel while China produced 779 million tonnes. In 2013, the UK produced 13 million tonnes of steel while China produced 779 million tonnes. Chinese exports have also soared. In 2003, the country exported 7.2 million tonnes rising to 107 million tonnes in 2015.
Chinese exports have also soared. In 2003, the country exported 7.2 million tonnes rising to 107 million tonnes in 2015. The country has been accused of dumping - selling steel very cheaply and regularly at a loss, with UK executives warning for months that the flood of steel was placing unsustainable pressure on the industry.
The country has been accused of dumping - selling steel very cheaply and regularly at a loss.
Executives have been warning for months that the flood of steel is placing unsustainable pressure on the industry.
'Failed to act'
Meanwhile, the Chinese ministry of commerce said imports of grain-oriented flat-rolled steel - a type of high-tech steel made by Tata's Cogent subsidiary in Newport - will be charged duties ranging from 14.5% to 46.3%.Meanwhile, the Chinese ministry of commerce said imports of grain-oriented flat-rolled steel - a type of high-tech steel made by Tata's Cogent subsidiary in Newport - will be charged duties ranging from 14.5% to 46.3%.
The US has imposed tariffs of 266% on Chinese steel but it has emerged Britain blocked efforts at EU level to impose similarly high emergency tariffs. The US has imposed tariffs of 266% on Chinese steel but Britain blocked efforts at EU level to impose similarly high emergency tariffs.
BBC political correspondent Carole Walker said the latest move by the Chinese would increase the pressure on the government - with critics pointing out that the UK government had opposed an EU plan that would have allowed higher tariffs on cheap imports from China. Ministers said they opposed the changes because they could have affected industries other than steel and did impose higher tariffs on some specific Chinese products such as reinforced steel.
They say the government has prioritised its trade relations with China over the UK steel industry, she adds. Analysis
Ministers refute that, saying they opposed the wholesale changes because they could have affected industries other than steel and did impose higher tariffs on some specific Chinese products such as reinforced steel. BBC business correspondent Joe Lynam
In the early 2000s, China was soaking up all the world's steel and iron ore to build its new cities, and created numerous steel production facilities in their industrial towns. Soon they were making more in one factory in a year, for example, than the entire British steel industry.
But when their construction boom waned, they had too much steel. They couldn't sell it locally and had to dump it overseas at a cut price. And you cannot compete with dumped steel.
In the future, the UK wants to focus on the production of expensive, specialist steel - but that is the very stuff now facing tariffs of up to 46% in China.
The other difficulty for the UK is that it wants to be one of China's major trade partners in the future.
For example, the government wants the Chinese to pay for a third of the Hinkley Point nuclear power station in Somerset, which is under way but hasn't got the final green light yet.
But to get that long term relationship, the UK might need to look away from certain Chinese trade practices.
Plaid Cymru leader Leanne Wood called the latest news about China imposing tariffs a "joke".Plaid Cymru leader Leanne Wood called the latest news about China imposing tariffs a "joke".
But a spokesman for the Department for Business, Skills and Innovation said Tata exported less than £1m or 1,000 tonnes a year of grain oriented electrical steel - the type subject to the tariff - a year, so it was "not expected to have much impact".
Business Secretary Sajid Javid met Port Talbot workers face-to-face on Friday, to promise he would be "fully involved" in talks over a possible sale and there were "viable buyers" out there.Business Secretary Sajid Javid met Port Talbot workers face-to-face on Friday, to promise he would be "fully involved" in talks over a possible sale and there were "viable buyers" out there.
Hundreds of Tata Steel workers gathered to demand answers as he left a meeting at the plant.
Steel production makes up 1% of Britain's manufacturing output and 0.1% of the country's economic output.Steel production makes up 1% of Britain's manufacturing output and 0.1% of the country's economic output.
It is understood the government is looking at offering loan guarantees to potential buyers and tighter rules on procurement to make sure major British projects are obliged to buy British steel.
Do you work at the Port Talbot steel plant? How will the plans to sell it affect you and your family? Let us know about your experiences. Email haveyoursay@bbc.co.uk with your stories.Do you work at the Port Talbot steel plant? How will the plans to sell it affect you and your family? Let us know about your experiences. Email haveyoursay@bbc.co.uk with your stories.
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