China's steel output gains over the last few years have been aided by "massive" energy subsidies, according to a report commissioned by the Alliance for American Manufacturing (AAM).
Energy subsidies to China's steel sector from 2000 to mid-2007 were estimated at 27.1 bln usd.
The report said the subsidies include support for thermal and coking coal, electricity, and natural gas.
"Chinese subsidies exist, they are enormous and they are shaping the global steel market. China has identified steel as a strategic industry, and both the central and provincial governments have decided to ramp up steel production with massive subsidies that have now been confirmed," said AAM's Usha Haley, the report's author.
China is the largest producer and consumer of steel in the world, accounting for 40 pct of the global market. In 2005, China went from a net steel importer to a net exporter.
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