Deflation alarm has sounded in Chinese steel market

US QE exit, have entered the world of deflation. Recalling the way the financial crisis, can not help but shocked last big winner is still the United States. The subprime mortgage crisis in the United States, the world suffer. After the first round of the Fed QE opened in 2008, although the economic recovery is slow but continuous, and now still remains lifeless in Europe and Japan, including China, emerging markets are slowing down, a serious problem in Latin America.

In Brisbane on November 16 ended the ninth G20 summit’s theme is “growth, employment, anti-risk.” The so-called “risk” means the risk of deflation in the global economy. Although Australian Prime Minister Abbott had let it go, when Australia meet Russian President Vladimir Putin, to Malaysia Airlines MH17 airliner was shot down in eastern Ukraine, the issue to give Putin a “wrestle”, but this did not happen dramatic scene. Although European and American leaders have the opportunity to put pressure on the Russian president, but only at the sidelines of saliva scattered, Ukraine crisis has not included in the official agenda of the summit. From one side reflects the seriousness of the risk of deflation is overwhelming.

Naypyidaw Myanmar in November 13 ended the 25th ASEAN Summit and the South China Sea issue on previous summit stir comparison, described as “calm.” Although the Philippines, Vietnam and Japanese media have reported previously, the ASEAN summit will issue a statement involving the South China Sea issue, but before the closing deadline, no published reports indicate that the relevant statement. Chinese Premier Li Keqiang initiative to speak but the South China Sea issue and proposed “double” system solutions. ASEAN summit in terms of time is a continuation of Beijing’s APEC meeting, to undertake a “win-win cooperation,” the spirit of the meeting. From the other side also reflects the current economy faces big risks of deflation. After weigh much, some contend those who pick things can only choose to cooperate or at least at this stage can only choose cooperated.

The positive impact of the APEC meeting in Beijing shortly before the end of the generation, is a little show. China is the big winner of this meeting is no doubt that rewarding. Among them, the Chinese in this FTAAP (Asia-Pacific FTA) APEC advocated resumption of negotiations, a joint strategic research and planning were implemented with the support line is the most strategic victory. A basic fact is, APEC now accounts for 40% of the world’s population, is the world’s trade and exchange of products of the most active areas. APEC economies than the rest of the world economy grow faster. Economic integration has brought a more liberal trading system, is continuing to promote the driving force behind this system. The United States for several years and focus on the Trans-Pacific Strategic Partnership Agreement (TPP) on the TPP negotiations, there is Japan’s third-largest economy this, there are also Vietnam and other countries, is not this the second largest economy in China, its purpose curb the intent is obvious. Once the TPP negotiation is successful, China’s annual export losses will reach $ 100 billion, and will ensure that preferential treatment to restart FTAPP China with major trading partners. Construction of China’s initiative to make the United States to start FTAPP complex feelings, the United States had been opposed. The United States announced TPP negotiations in 2008, six years later, TPP negotiations is still nowhere in sight. US worried that the US will hinder complete restart FTAPP TPP negotiations. They are in fact, as the FTAPP TPP competitors, leading FTA can not naturally make the United States Asia-Pacific region have anxiety. Over the past five years, China’s third-largest economy jumped from the second-largest economy, the influence is quite different. Solve the economic problems of today’s world China is essential, especially when the risk when the advent of China as a responsible big country in the world is indispensable.



At present, the Chinese supplier of steel overcapacity  seriously, this situation must will bring more difficult conditions to the steel mills .