EU carbon tariff disrupts China steel exporters as firms call rules 'absurd'
The European Union's Carbon Border Adjustment Mechanism is making it significantly harder for Chinese steel producers to export to the European market, according to reports. Industry representatives speaking to SCMP described the reporting requirements and methodology as 'absurd'. Beijing said technical talks with the EU are continuing.
According to the South China Morning Post, the European Union's Carbon Border Adjustment Mechanism (CBAM) is significantly complicating Chinese steelmakers' export operations to the European market. Industry representatives speaking to the paper described the reporting methodology and embedded-emissions formulas as "absurd" in their complexity.
Chinese exporters say every shipment to the EU must be documented with emissions reports stretching across the supply chain, and that small- and medium-sized firms cannot absorb the burden. Beijing said technical talks with the European Commission continue, and that the disputes would be evaluated under World Trade Organization rules.
Sector analysts say CBAM's move from transitional to full application by late 2026 could affect Chinese steel exports at a scale of billions of dollars per year. Some Chinese steel stocks have traded under pressure on a weekly basis. This content is not investment advice.
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