China will implement a licensing system for steel exports starting in 2026 to regulate steel exports. However, the Japan Iron and Steel Federation (JISF) believes that this policy will be unlikely to truly curb the scale of steel exports.

In recent years, China's steel exports have continued to grow, triggering increased trade protectionism in many countries. The JISF states that the main purpose of this measure is to focus on quality management rather than curbing export volume, and therefore, it will not have a substantial impact on market prices.

Japan believes that due to China's government subsidies, Chinese steel companies have overproduced and exported at low prices, exacerbating the global steel market's supply-demand imbalance.