Licensing of steel exports from China should ease trade tensions

China’s introduction of export licenses for about 300 types of steel products starting next year allows for tighter control over overseas shipments, according to the country’s Ministry of Commerce, Reuters reports.

“The steel export licensing system complies with World Trade Organization rules,” said ministry spokesman He Yadong.

Steel exports from China have risen sharply since 2023 after recovering from the COVID pandemic, despite trade barriers being imposed by an increasing number of countries to protect their own producers.

As Luo Tiejun, vice chairman of the China Iron and Steel Association (CISA), noted, there are problems with current steel exports: volumes have increased, but prices have fallen, causing trade friction.

According to the association’s statement, the steel export license, which requires an online application, will be valid for six months. It can only be used during the year in which it is issued, even if the six-month period has not expired.

The export license can be used up to 12 times for customs clearance of certain specific goods during its validity period.

As Reuters notes, China has previously applied licensing practices, introducing mandatory export licenses for certain types of steel products in 2007. However, this requirement was abolished two years later.

In the first 11 months of 2025, China’s steel exports increased by 6.7% year-on-year to 107.72 million tons, according to the country’s customs data, while their value in dollars decreased by 2.1% year-on-year.

It should be recalled that the Chinese Ministry of Commerce, together with the General Administration of Customs of the PRC, recently announced the introduction of export licensing for some steel products. The relevant decision will come into force on January 1, 2026. Pig iron, semi-finished products, flat and long rolled products, as well as pipes and rail products will be subject to control.