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China's steel export test

Overview

China, the world's biggest steel producer, is to introduce export licensing for its booming steel industry on 20 May. This follows the failure of central government policies to rein in output and exports. While the largest producers are state-run, Beijing's attempt to rationalise the industry has been weakened by halting progress in major mergers, growth of smaller locally-run mills and the development of intermediate trading for exports.

The policy of cutting VAT rebates has...

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