China Iron And Steel Industry Competitiveness Strategy

Iron and steel industry is one of the basic industries in national economydevelopment, is a technology-, capital-, resource-and energy–intensive industry,and has great relevance to other industries. It has great significance to the nationaleconomy and national security and consequently, the upgrading of itscompetitiveness will be critical to the perfection of the economic system, theimprovement of the national security and China’s international standing.Since the foundation of PRC, along with the development of the economy, greatprogresses have been made in the iron and steel industry. The output grows rapidly.At the same time, great progresses have been achieved in the aspects of quality,equipment, technology, economy, energy conservation, environment protection,etc..However, the iron and steel industry of China shows an obvious feature which islarge but not strong. Specifically, there are some problems in China iron and steelindustry, such as the irrational industrial layout, low industry concentration, seriousexcess production capacity, severe homogeneity of the products and fierce marketcompetition, poor quality and steel grades which are not suited to the requirementsof the market, low capability of independent innovation, high energy consumption,serious environment pollution, raw material supply chain and week Consciousnessof service industry,which influence and restrict the competitiveness and developmentof this industry seriously. Following the third Plenary Session of the18th CPCCentral Committee and the Central Economic Working Conference, a corerequirement of “Making Progress While Ensuring Stability, Stressing on Reformand Innovative”was put forward by China. In this case, it turns out to be essentialfor the iron and steel industry to find out a right way in answer to the requirement ofour nation, to foster the cutting edge of China iron and steel industry, make out thestrategy to improve the competitiveness and promote the transition from the large tothe strong in a reform and innovation oriented manner, for a sound development ofthe national economy of China.There are6parts in the paper, Part1is the introduction of the research objectiveand significance, and proposes the research approach, importance, difficultiesandinnovations for the iron and steel industry competitiveness improvement strategybased on the concept definition and characteristic analysis of the iron and steelindustry, and proposes the solutions and measures for the competitivenessimprovement. Part2analyses and summaries the studies on competitiveness theories made by scholars at home and abroad and the theories involved in this paper,proposes the entry point for the our study. Part3discusses the full picture of thedevelopment of iron and steel industry of the world, and summarizes the factorslimiting the promotion of competitiveness and the inherent evolvement rules to lay afoundation for exploration of the methods and ways for improving ourcompetitiveness by learning the advanced world experiences, based on the studies ofsome well-developed countries in the different develop periods such as Europe,America, Japan and ROK. Part4discusses the development course and currentstatus of the iron and steel industry of China from those areas of production andconsumption, industry structure and concentration, technology and equipment level,product mix and differentiation, entry and exit of the barriers, etc.. At the same time,find the existing problems and solve them according to the current situations inChina steel industry; Part5makes an in-depth research to some competitive iron andsteel companies in the world from the enterprise perspective, the study should betransferred from the industrial competitiveness to the enterprise competitiveness andhow to improve the enterprise competitiveness through the improvement of theindustry competitiveness. The improvement of the industry competitiveness shouldbe discussed from micro levels to macro levels;Part6, on the basis of above analysis,put forward to eightkinds of strategy which have several key points to promote thecompetitiveness of china’s iron and steel manufacture from the majors factors whichinfluence the improvement of the steel industry competitiveness. The key points arethe transformation of service industry, thecircular economy,technology innovation,condensing the improvement of the industry competitiveness, resourcecontrol,quality management,improving the efficiency and cost control. Come upwith the ways to promoting the improvement of the steel industry competitiveness topush the transfer from large to strong from the perspective of countries andenterprises.