De-Capacity Policy in Metallurgical Industry as a Way to Protect National Producers: Experience of China

Abstract

The research aims to determine correspondence between government measures of support and protection of national metallurgy producers and the de-capacity policy in China. The author uses the methods of systematization and generalization to analyze government measures of support and protection of national metallurgy producers, as well as the method of correlation to analyze possible economic effects by implementing the de-capacity policy. The research object is Chinese government policy in metallurgical industry. The research subject is the economic indicators of Chinese metallurgy. In the face of global economic challenges and internal structural problems, the government policy and implemented measures of support may not correspond to the declared course of economic development. Judging by statistics, the de-capacity policy in metallurgy was eliminated by measures of support and protection of national metallurgy producers. Government measures taken were not coordinated with each other. Moreover, these measures may have deteriorated the national economy due to foreign trade restrictions. This paper focuses on the importance of enhancing the efficiency of government support measures taken.