| The steel industry of china struggles from excess production capacity and the restriction of iron ore supplying. This situation is caused by the spirit of regardless expanding; meanwhile steel corporations ignore qualities of managements and resources distribution. The stainless steel industry is one part of the whole steel system, and because of the profit many huge Chinese steel giant entered this area. In spite of the entering, the degree of concentration of stainless steel industry is greatly higher than the one of steel industry. The biggest 4 stainless steel companies occupy 44.56% market share, Taiyuan Iron & Steel (Group) CO., LTD (TISCO) who is the biggest stainless maker in China has 14.61% market share. Basing on the analysis of the performance of TISCO, TISCO gains little advantage from high market occupation. Directive merger and acquisition (M&A) order from government can't obtain the goal, which is to improve the competition ability in the global market. There are no causation relations between the high industry concentration rate and enterprise performance. At the end of the paper, the author try to put up a suggestion that Chinese steel enterprises should join in the global iron ore more openly. The government's policy ought to focus on the reforming of its fiscal allocation and taxation system for giving M&A an excellent circumstance. |
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