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China's Manufacturing Industry Has Risen Against The Trend: Despite High Tariffs, Its Global Market Share Has Not Declined But Increased Instead, And The Special Steel Industry Leads The International High-End Demand

Apr 27, 2025

Since 2024, the Trump administration of the United States has continued its tough trade policy towards China, imposing high tariffs in multiple fields in an attempt to curb the international competitiveness of Chinese goods. However, the latest trade data shows that China's exports have not been crushed; instead, they have demonstrated greater resilience and adaptability in the global market. Especially in high-end manufacturing fields such as special steel and alloy steel, Chinese products are becoming a key support for global mechanical manufacturing, petrochemicals, aerospace and infrastructure construction, winning international recognition with their outstanding quality and technological breakthroughs.

First, tariff barriers cannot stop the pace of globalization of "Made in China"
Since Trump took office, the coverage of the tariffs imposed by the United States on China has been continuously expanding, including key industries such as steel, aluminum products, and mechanical equipment. However, through market diversification strategies and industrial upgrading, Chinese export enterprises have successfully transformed trade pressure into the impetus for expanding into new markets.

According to data from China's General Administration of Customs, in the first half of 2024, China's total value of goods trade imports and exports increased by 5.8% year-on-year. Among them, the growth rate of exports to countries along the Belt and Road, ASEAN, Latin America and Africa all exceeded 10%. The irreplaceability of Chinese goods in the global supply chain has been further highlighted, especially in the high-end manufacturing sector. The export volume of China's special steel has not decreased but increased instead, becoming a "hard currency" in the international market.

Special Steel and Alloy Steel: The "Hidden Champions" of China's High-End Manufacturing
Against the backdrop of the Trump administration's attempt to protect its domestic steel industry through tariffs, China's special steel industry has risen against the trend. Relying on technological breakthroughs and cost advantages, it has become a core supplier for the global high-end manufacturing industry.

1. Machinery manufacturing and petrochemicals: Chinese steel supports global industrial development
Special alloy steels produced by enterprises such as China Baowu Steel and Ansteel are widely used in heavy machinery, oil drilling and chemical equipment manufacturing due to their high strength, corrosion resistance and high-temperature stability. For instance, in March 2024, Saudi Aramco signed a long-term supply agreement with a Chinese enterprise to purchase tens of thousands of tons of high-strength alloy steel pipes for the development of oil and gas fields in the Middle East. The Saudi Energy Minister said, "The quality and delivery efficiency of Chinese steel far exceed those of European and American suppliers, making it an indispensable partner for us."

2. Aerospace: Domestic high-end steel breaks the Western monopoly
In recent years, China has made significant breakthroughs in the field of steel for aerospace. The products such as T800 grade carbon fiber composite support steel and high-temperature alloy steel developed by Taiyuan Iron & Steel Group have been applied to the domestically produced C919 large aircraft and the Long March series of rockets, and have been exported to aviation manufacturing enterprises in Russia, Brazil and other countries. In April 2024, Airbus, a European company, announced an expansion of its procurement of special steel from China to reduce its reliance on supply chains in the United States and Europe.

3. Infrastructure Construction: China's steel structures reshape global landmarks
Along the Belt and Road Initiative, Chinese steel has become the core material for bridge, high-speed rail and port construction. Major projects such as the Jakarta-Bandung High-Speed Railway in Indonesia, the new capital CBD in Egypt, and the Hungary-Serbia Railway all use high-strength weathering steel from China. In February 2024, China's Ansteel Group won the bid for the Sydney Undersea Tunnel project in Australia, providing 50,000 tons of special steel structures. This marked the successful entry of China's high-end steel into the infrastructure market of developed countries.

Quality Upgrade: From "Price Advantage" to "Technological Leadership"
In the past, China's steel industry was often labeled as "low-end surplus", but in recent years, through technological innovation and industrial integration, the quality of China's special steel has reached the world-class level.

Technological breakthrough: The "hand-torn steel" (ultra-thin stainless steel foil) developed by Baowu Group has a thickness of only 0.015 millimeters, breaking the foreign monopoly and being widely used in precision instruments and new energy batteries.
Green manufacturing: China's steel industry is accelerating its low-carbon transformation. Technologies such as hydrogen steelmaking and short electric arc furnace processes have significantly reduced carbon emissions. The EU Carbon Border Tax (CBAM) has a limited impact on Chinese steel enterprises.
International Certification: Many Chinese steel enterprises have passed international certifications such as API (American Petroleum Institute) and ASME (American Society of Mechanical Engineers), and their products have entered the high-end markets of the United States and Europe.

Fourth, foreign media comments: Tariff policies have instead promoted China's industrial upgrading
The Financial Times analyzed and pointed out that Trump's tariff policy failed to weaken China's exports; instead, it prompted Chinese enterprises to accelerate their transformation towards high value-added sectors. Bloomberg reported: "China's global market share of special steel has risen from 12% in 2020 to 18% in 2024, making it a strong competitor to German and Japanese enterprises."

Future Outlook: China's Manufacturing is Moving towards the high end of the Global Value chain
Despite the rise of trade protectionism, China's manufacturing industry, relying on its full industrial chain advantages and technological accumulation, is transforming from the "world's factory" to the "global high-end manufacturing center". The rise of the special steel industry is just a microcosm of the high-quality development of China's manufacturing.

Conclusion
Trump's tariff stick failed to curb the global expansion of Chinese goods. Instead, it enabled "Made in China" to regain stronger vitality under pressure. From oil drilling to aerospace, from cross-sea Bridges to precision instruments, Chinese special steel is conquering the world with its outstanding quality. This trade war has ultimately proved a fact: true competitiveness is not built up by tariffs, but won through technology, quality and open cooperation.

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