China imposes moratorium on "chaotic" steel industry
The English language China Daily today reported the government has instituted a three-year moratorium on the steel industry for applications to expand production or start new projects.
China has long been tackling the steel industry's overcapacity, but has now called the industry "chaotic" and linked the issue to the recent Rio scandal, in which four employees of the mining giant have been charged for trade secrets infringement and bribery.
China's Industry and Information Technology Minister Li Yizhong said that "with China's steel industry in turmoil over the Rio Tinto scandal," the country "needs to have more say in the global iron ore trade."
"Spot prices of iron ore are increasing sharply on the global market and we hope to see an appropriate relationship between spot prices and long-term contract prices," he added.
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