mk Ltd. in Tangshan, north China's Hebei Province, May 1, 2024. International Workers' Day is observed annually on May 1. (Photo by Liu Mancang/Xinhua)" src="https://www.globaltimes.cn/Portals/0/attachment/2025/2025-02-13/61b37675-5ff5-4f4e-bf49-b6e5b422f063.jpeg" />Staff members work at a warehouse of Ganglu Iron & Steel Co., Ltd. in Tangshan, north China's Hebei Province, May 1, 2024. International Workers' Day is observed annually on May 1. (Photo by Liu Mancang/Xinhua)
India's reported plan to impose temporary tariffs against imports of Chinese steel revealed insufficient competitiveness of India's own steel industry and will be counterproductive to India's domestic development, a Chinese expert said on Thursday.
India could impose a temporary tax of 15-25 percent on steel from China in as little as six months because of the "serious challenge" to domestic producers from cheap imports, Indian Steel Minister H.D. Kumaraswamy said, according to a Reuters report.
This move came after India transitioned into a net importer of finished steel in the fiscal year ending in March 2024, with Chinese shipments hitting record highs between April and December, according to Reuters.
Liu Zongyi, director of the Center for South Asia Studies at the Shanghai Institutes for International Studies, told the Global Times on Thursday that India's imports of Chinese steel stem from its own insufficient competitiveness.
"Some Indian companies turn to China for steel because domestically produced options often do not meet the necessary quality standards, and production costs in India tend to be higher. India's proposed measures are intended to protect and strengthen its domestic industry," Liu said.
India's reported move is also set against a backdrop of escalating global trade tensions. On Monday, US President Donald Trump imposed a 25 percent tariff on all steel and aluminum imports.
Liu noted that India's consideration of temporary taxes on Chinese steel may be linked to the US' protectionist trade policies, adding that although the US tariffs were not directly aimed at India, they are expected to have a ripple effect on the global steel market, and Indian steel producers could face increased challenges in exporting their products.
In response, India appears to be adopting a "robbing Peter to pay Paul" approach by imposing higher taxes on Chinese products in an attempt to protect its own steel industry, Liu said, adding such an approach will further weaken the competitiveness of India's domestic industries.
According to Reuters, India's steel exports have slumped in recent months, primarily due to sluggish global demand.
Zhang Jiadong, director of the Center for South Asian Studies at Fudan University, told the Global Times on Thursday that India's plan for temporary taxes on steel imports following the move by the US is fundamentally misguided and contradicts the spirit of the WTO, especially in the absence of evidence of Chinese dumping that harms India's steel industry.
He noted that the primary challenges facing India's steel industry are low efficiency and insufficient production capacity that fails to meet domestic demand.
Meanwhile, China's steel industry is seeing stable development, with cooperation between Chinese and foreign steelmakers.
On Thursday, a joint venture of Baoshan Iron & Steel Co, Baowu Aluminum Technology Co and Japan's Kobe Steel Group held its inauguration ceremony in Shanghai, Paper.cn reported. The plant will produce automotive aluminum panels in China, Kobe Steel said on its official website in August.