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It's been nearly six months since the US announced a 25-percent tariff on imported steel. The Taiyuan Iron and Steel Company, or TISCO, one of China's top steel groups, has dealt with the situation from day one. Reporter Hu Chao takes us to northern China's Shanxi Province to find out how.
Irreplaceable, that's how one American client describes Chinese steel products. Wang Tianxiang, manager of the TISCO Steel Precision Strip Company, says his American client buys up to 140 tons of steel products each month.
WANG TIANXIANG, MANAGER TISCO STAINLESS STEEL PRECISION STRIP CO. "We once had very good cooperation. But after the US imposed a 25% tariff on imported steel products, this American client suspended business with us for about two months. But they couldn't find another supplier as good as us. So eventually they resumed our arrangement and decided to pay 70% of the new tariff while our agent took the other 30%."
Wang also explained why many foreign importers prefer Chinese steel products.
WANG TIANXIANG, MANAGER TISCO STAINLESS STEEL PRECISION STRIP CO. "They believe China's products are irreplaceable in the global supply chain. They prefer Chinese suppliers because our products combine stable, good quality with the best prices."
TISCO is one of China's largest steel companies. It started adjusting its global market layout once the US launched frequent anti-dumping measures against China's steel industry years ago.
ZHANG TENG, MANAGER INT'L TRADE DEPT., TISCO MARKETING CENTER "In recent years, while we've maintained our traditional export markets, we've focused more on exploring new emerging markets in countries and regions along the Belt and Road, including Southeast Asia, the Middle East and the CIS countries."
TISCO also spent more efforts on making technology breakthroughs. They believe it's vital for staying competitive. Now the company has produced more high-end products that few other companies in the world can even manufacture, like this stainless steel foil. It's only one fourth as thick as a piece of a paper and can be widely used in many high-end industries.
HU CHAO TAIYUAN, SHANXI PROVINCE "Thanks to these efforts, TISCO's total export volume in the first half of 2018 increased 10 percent. However, TISCO says they will still keep an eye on any moves of trade protectionism around the world and prepare for the impact. Hu Chao, CGTN, Taiyuan, Shanxi Province."