December 2025 – The Ministry of Commerce and the General Administration of Customs of China jointly issued a landmark announcement, declaring that export license management will be implemented for certain steel products starting January 1, 2026. This marks the first reinstatement of the steel export license system in 16 years, paired with the release of the Work Plan for Stabilizing Growth in the Steel Industry (2025-2026). The policy shift signals China’s steel exports are officially moving from a "scale-expansion" model to a "quality-improvement" trajectory, injecting new momentum into the industry’s global high-end supply chain competition.According to He Yadong, spokesperson for the Ministry of Commerce, the export license management covers 300 steel-related customs code products. The core objective is to strengthen export monitoring, statistics, and quality control, rather than imposing export quotas or operational barriers for enterprises.
Enterprises applying for export licenses are required to submit product quality inspection certificates, a institutional constraint designed to guide manufacturers to prioritize R&D and quality enhancement. The policy strictly complies with World Trade Organization (WTO) rules, formulated after extensive industry consultations to balance standardized development and international trade compliance.
The introduction of the new policy responds to both global trade challenges and domestic industry demands:
- Global trade headwinds: Frequent steel trade disputes persist worldwide. The U.S. maintains a 50% steel import tariff under Section 232, while the EU will include steel in the fully implemented Carbon Border Adjustment Mechanism (CBAM) in 2026, putting traditional low-priced steel exports under pressure.
- Domestic industry constraints: The Chinese steel industry operated on thin margins in 2024, with full-industry profits dropping 42.6% year-on-year. Bound by rigid environmental protection and dual-carbon goals, the industry must upgrade product structures to enhance core competitiveness.
Against this backdrop, export license management has become a key measure to proactively tackle international trade frictions and drive industrial transformation.
For the steel sector, the policy will act as a catalyst for optimizing export structures:
- Phase-out of low-end products: Long dominated by mid-to-low-end construction steel, China’s steel exports have faced issues like homogeneous competition and trade dispute risks. The new policy will standardize the export process for low-value-added products, curbing blind expansion.
- Boost for high-value-added segments: High-tech steel products – including new energy vehicle steel, high-strength wind power equipment steel, and aerospace special steel – will gain greater policy support and market access. Industry data projects China’s special steel output to hit 185 million tons in 2026, accounting for 23% of total crude steel output. High-end products such as premium bearing steel and stainless steel bars are winning growing international recognition, laying a solid foundation for high-quality overseas expansion.
In international trade scenarios, the policy will strongly support Chinese steel products in expanding overseas markets via mainstream terms like CFR (Cost and Freight).
Key export regions such as the Middle East and Southeast Asia are seeing surging demand for high-value-added steel, driven by booming new energy vehicle manufacturing and high-end infrastructure projects. Previously, Chinese steel exports to destinations like CFR Jebel Ali (Dubai, UAE) and CFR Dammam (Saudi Arabia) faced price competition due to low product added value.
Post-policy implementation, the rising proportion of high-end exports – such as automotive high-strength steel plates and energy equipment corrosion-resistant steel – will effectively enhance the international image of Chinese steel and strengthen its voice in global high-end supply chains.
Industry experts note that the policy may trigger short-term market adjustments: a phased drop in steel exports is expected early in 2026, possibly accompanied by a year-end export rush in December 2025.
In the long run, however, the policy will force enterprises to increase R&D investment, accelerate the adoption of green technologies like hydrogen metallurgy and short-process steelmaking, and improve the low-carbon attributes and technological content of products. For overseas buyers, this means more stable and high-quality Chinese steel supplies, facilitating the construction of a sustainable global steel supply chain.
A representative from the China Iron and Steel Industry Association stated that the association will support policy implementation, build a comprehensive service system for high-end steel exports, and help enterprises tap into international high-end market demand. With the policy’s effective execution, the share of China’s high-value-added steel exports is set to rise steadily, reducing reliance on low-end products and elevating China’s position in the global steel value chain.
