Chin The World 's Largest Producer Of Coke

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Coke Industry China is the world’s largest producer of coke, and there is evidence that China has for the last decade manipulated production and prices. According to the OECD, China’s use of export quotas became more commonplace starting in 2004 and continued for several years. Coke export allocations of 12 million tons in 2008 were cut to 11.9 million tons in 2009, to 9 million tons in 2010 and to 8.4 million tons in 2011. As China rolled out the export quota over these years, it concurrently started to introduce export taxes on coke in 2006. The graph below shows China’s ad valorem export tax rates compared to Russia and the rest of the world in 2012. As depicted, China’s export tax was approximately 40%, while Russia’s was significantly lower at 5% and the rest of the world almost non-existent.
This export tax essentially raised the price that importers abroad, including the United States, had to pay at the end, making U.S. buyers of coke less competitive in the global supply chain. The added ad valorem tax would suppress demand, thereby reducing the price that sellers would receive on the market. When considering the aftermath of China’s loss in the 2013 WTO case, it was forced to eliminate the export restraint measures on the 9 raw materials, including coke. As a result, a tax-free situation meant that Chinese coke became cheaper again, which would have led to an increased supply of coke exports to the United States.
Chinese Motivations and Claims Defending Export

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