China will implement an export licensing system for certain steel products starting in 2026.

To meet the requirements of the new development stage and promote high-quality development in the steel industry, China's Ministry of Commerce and General Administration of Customs recently jointly issued Announcement No. 79 of 2025. Effective January 1, 2026, export license management will be implemented for hundreds of steel products, including pig iron, scrap steel, semi-finished steel products, and various finished steel products. This significant policy adjustment signifies that China's steel export management mechanism is shifting toward a more standardized and orderly direction.

According to the announcement, starting next year, foreign trade operators must apply for export licenses from designated commerce authorities before shipping relevant steel products. Applications require export contracts and quality inspection certificates issued by manufacturers. License issuance will be handled by the Ministry of Commerce and its authorized local commerce authorities based on the principle of territorial jurisdiction. This management system not only supplements the existing Catalogue of Goods Subject to Export License Management but also concretely reflects efforts to regulate steel exports in accordance with the law.

Industry analysis suggests this policy stems from multiple strategic considerations: On one hand, optimizing export management enhances the stability and security of domestic industrial chains and supply chains, ensuring the availability of critical raw materials. On the other hand, it encourages enterprises to prioritize product quality improvement and technological innovation, driving the steel industry's transition from scale expansion to quality and efficiency. Against the backdrop of complex and volatile global trade conditions, this initiative also enables China's steel sector to engage in international competition with greater resilience.

For steel exporters, the new regulations necessitate timely adjustments to business strategies and early familiarity with the licensing application process. Particularly for high-volume export categories like steel pipes and sections, companies should promptly enhance internal quality management systems to ensure products meet export standards. Concurrently, strengthening communication with regulatory authorities and planning for the transition period are essential.

Overall, the implementation of export license management represents a significant step for China's steel industry in deepening supply-side structural reforms and advancing high-level opening-up. As the policy takes effect, it is expected to drive the entire industry toward higher-quality development, enhance international competitiveness, and lay a more solid foundation for achieving the goal of becoming a steel powerhouse.

Tags: Export License Management,  Steel Trade,  Industrial Upgrading,  Supply Chain Security,  High-Quality Development,