Research On Excessive Competition Of Iron And Steel Industry In China

In the course of China’s economic development, excessive competition has become a main cause of many industry development and progress. Iron and steel industry as the foundation of industrial development, in recent years, there have been low industry concentration, small-scale, idle capacity, weak international competitiveness, lower profitability, technological innovation slow and many other issues, These results fully indicate that China’s steel industry is a typical over-competing industries. Excessive competition issues arised not only with the mode of development and targeting relevant of China’s steel industry for many years, but also inextricably linked with our policy framework and implementation. Excessive competition in iron and steel industries directly affects the efficient allocation of resources, the orderly operation of the economy, and even the right to speak in international trade. Therefore, the steel industry plays a vital role in healthy development of upstream and downstream industries and the national economy as a whole, to study the causes, effects and countermeasures of its excessive competition, the purpose is to achieve China’s steel industry from excessive competition to compete effectively as soon as possible.Research on excessive competition in China’s iron and steel industry, first, determine China’s steel industry is the existence of excessive competition from the regional distribution, distribution of production, market structure, market behavior and market performance by the method of linking theory with practice, on the basis of excessive competition theory and the iron and steel industry current situation, with the aid of statistical data. Then, According to the advance and retreat barriers theory and game methods,analyze the mechanism of the excessive competition of China’s steel industry from the advance and retreat barriers, supply and demand, the government three angles, at the same time reveal the harm of excessive competition for their own industry, other industries and national economic. Finally, Choose a favorable development target mode on the basic of effective competition theory and the environment of China’s steel industry, taking into account the competitive activity and economies of scale,that is a market structure which exists between monopolistic competition and oligopoly,it is also the innovation of this article;At the same time,get inspiration by comparing with the experience of controlling excessive competition in developed countries, put forward specific strategy for Chinese iron and steel industry to compete effectively.