German Chancellor Angela Merkel has urged China to speed up reforms in the steel industry to avoid a further rift with Brussels, according to Deutsche Welle.
In her speech to the Chinese Academy of Sciences in Beijing, Mrs. Merkel warned, “Overcapacity is causing a big headache for Europe's steel industry,” adding that the EU does not want a trade war with China. She also urged China to ensure a level playing field.
According to Deutsche Welle, China has promised reforms of its heavy industries, though, some countries claim that Beijing is stalling since the changes will result in the loss of thousands of jobs. Meanwhile, China is urging EU to recognize it as a market economy. “The confirmation is expected in late 2016, but some EU states are hesitant to change the bloc's trading status, given China's ongoing overproduction in several sectors,” Deutsche Welle stated in its report.