CHINA has declared economic war on Britain by slapping a hugely punitive tax on high grade steel produced in South Wales.
Beijing has imposed a killer 46% levy on the high tech metal amid accusations that its deliberate over-production of steel is strangling UK production.
Chinese ministers announced the huge tax will be imposed on British exports of sophisticated “grain oriented electrical steel” which is produced in South Wales.
They say the levy is necessary to protect their own factories, which they claim are being subjected to “substantial damage” and “material injury” by European exports.
But the move is likely to infuriate the 50,000 British steel workers who could lose their jobs if the Port Talbot plant closes. It came as the Government was rocked today by accusations it brought about the current crisis by blocking higher tariffs on Chinese steel proposed by the EU to appease the Communist regime in Beijing.
Owner Tata says the Chinese practice of ‘dumping’ steel on the market place – in other words selling it at a loss – has driven down prices to the extent that British production is no longer profitable.
It is also a potentially killer blow to the increasingly desperate attempts to save Britain’s steel industry.
David Cameron and George Osborne have been accused of “kow-towing” to Beijing after Brussels opted to impose a miserly tariff of between 21% and 36%, compared to America and Canada whose rates are over 200%.
In return the Chinese have tonight delivered a hammer blow to British manufacturing. The new levy will affect high-tech steel manufactured in Newport by Tata Steel’s Cogent subsidiary, which is one of just 16 global producers of the highly specialised product.
Full article: China declares economic WAR on Britain: Now Beijing imposes killer tax on OUR steel (Express)