China, EU agree to steel working group amid dumping concerns

EU leaders say they have agreed with China to form a working group to discuss Beijing's overproduction of steel, which they say is linked to whether they will grant market economy status to China.

European Commission President Jean-Claude Juncker told reporters Wednesday that there is a clear link between steel overcapacity in China and the market economy status for China.

He said that he had agreed with Chinese Premier Li Keqiang to establish "a kind of steel platform between China and the European Union to keep alive the debates and the discussions we have related to the steel overproduction."

Juncker is in Beijing to attend a two-day summit that ended Wednesday.

European steelmakers accuse China of dumping steel on the world market. Market status would mean more Chinese imports.