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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 Washington dinner on Thursday, Mr Cameron said they needed to work together to tackle "over-capacity".
China "dumping" cheap steel on overseas markets is being partly blamed for the problems facing the UK steel industry. It comes as China, which has been accused of hurting the UK's industry by "dumping" cheap steel, announced import tariffs of up to 46% on some EU steel.
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 government and steel firm Tata said the duties were unwelcome, but would not have much impact on UK exports.
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". Tata said the particular type of steel affected by the tariff had not been exported "in recent times from our UK operations", but it was concerned about the wider impact on the market.
'No guarantees''No guarantees'
The two leaders met at the White House during the Nuclear Security Summit in Washington.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".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, and said the G20 in China in September could be a good forum to address the issue.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. Chinese exports have also soared. In 2003, the country exported 7.2 million tonnes rising to 107 million tonnes in 2015.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.
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, with UK executives warning for months that the flood of steel was placing unsustainable pressure on the industry.
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 electrical 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 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.
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.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.
'Unwelcome'
A spokesman for UK Steel, the industry's trade association, said exports of this type of steel to China were about 1,000 tonnes per year in 2011, 2012 and 2013. This fell in 2014 to 590 tonnes and again in 2015 to 332 tonnes, it said.
The Department for Business, Skills and Innovation said the duties were "clearly unwelcome", but were "not expected to have much impact".
However, Tata said it was concerned about the disparity between the EU's low tariffs and high tariffs set by other countries, and the knock on effect on other countries looking for alternative markets for their products.
AnalysisAnalysis
BBC business correspondent Joe LynamBBC 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.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.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.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.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.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.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.
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.
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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