Eurofer: Chinese acquisition of a plant in Serbia worsens the situation

The European Metallurgy Association Eurofer says the acquisition of the Smederevo plant in Serbia by a Chinese state-owned company poses a threat to the competitiveness of the steel segment in Europe.

The Serbian plant Zelezara Smederevo, after a long search for a new investor, was bought by Hebei Iron & Steel. According to Eurofer, the acquisition of steel mills in the EU candidate countries by a Chinese state-owned enterprise raises serious concerns about unfair competition.

Axel Eggert, CEO of Eurofer, recalled that the Chinese government has already been criticized by G7 leaders in connection with overseas acquisitions by state-owned Chinese enterprises. Eggert believes the purchase of the steel plant will boost Chinese exports to the global market, where government support keeps overproduction at 400 million tonnes a year.

The EU must resist granting China the status of a market economy until the Chinese government stops meddling in its economy and promotes free and fair competition and international trade. The latest purchase only confirms the problems with non-market conditions in China. This is an attempt by the Chinese steel industry to establish itself overseas, Axel Eggert said.