Chinese steel overcapacity has been a source of trade tensions for many years, triggering the infamous US Section 232 tariffs in 2018. One critical narrative argues that the Chinese supply-demand gap and strong government support is flooding domestic steel markets, particularly in G7 economies. Although evidence supports the existence of this gap and the strong subsidisation of the industry, we argue that the growth of the Belt and Road Initiative (BRI) has absorbed much of China’s steel exports.