China’s carbon market regulator has recently introduced several easing measures to counter the impact of the US-China tariff war on steel and aluminum producers.

China's Ministry of Ecology and Environment released a work plan on April 15 to assist the steel, aluminum, and cement industries in coping with the first compliance period until the end of 2025. Industry experts said that since most companies still lack perfect carbon trading and management capabilities, regulators are unlikely to impose excessively high carbon emission costs on steel and aluminum producers in the short term. It is expected that carbon emission caps will be set next year, but the initial standards may be relatively loose.

While facing the US-China trade war, steel and aluminum producers are actively adjusting their long-term strategies, such as accelerating the diversification of supply chains and focusing more on the domestic market, in order to maintain competitiveness.