China Must Choose Between Inflation or Pollution From Steel
- Some product prices have soared to the highest since 2008
- Beijing’s green push puts steel industry in the crosshairs
Photographer: Xiaolu Chu/Getty Images
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China’s vast steel sector is the scene of a conflict between economic growth and a green agenda that points to wider challenges as President Xi Jinping tries to clean up the world’s top carbon emitter.
The government is pushing for steel output to drop from a record of more than 1 billion tons, in a campaign triggered by Xi’s pledge to deliver a carbon neutral economy by 2060. But early moves to squeeze steelmakers have fired up prices and created a headache for policymakers fretting about surging inflation.