The Overcapacity Resolution And The Industrial Upgrade Of Chinese Steel Industry

The Steel Industry as an important pillar industry in China, has experienced a rapid development period, and then after recent years of excess production capacity, the shrinking market demand and other issues have become increasingly severer, and the low industry concentration, serious overcapacity, low corporate profits, backward technology for energy and environmental conservation, inadequate productivity for independent innovation and other serious problems have gradually being exposed with the development of Chinese Steel Industry; and in the field of foreign trade, a lack of competitiveness in the international markets, increasing trade frictions and other issues have indeed become the matters. All these issues have put the overcapacity resolution and upgrade of Chinese Steel Industry on the urgent agenda. The presentation of " the Belt and Road" proposal has exactly brought the confused enterprises of Chinese Steel Industry with unprecedented opportunities for the further development, more and more experts and scientists have found that "the Belt and Road" strategy can play an important role to resolve the overcapacity of Chinese Steel and to promote the upgrade of the Steel Industry. Therefore, the Chinese Steel Industry should promptly catch the good opportunity from " the Belt and Road" strategy to actively utilize effects of resources support, market expansion, direct foreign investment as the realization approaches for the resolution of overcapacity problem and achievement of industrial restructuring and upgrade within a shorter schedule.This paper primarily adopts the methods of comparative analysis, combination of qualitative and quantitative analysis, system analysis and other methods, introduces the research background, describes the relevant concepts, theories and knowledge, domestic and foreign literature, and analyzes the development status of the Steel Industry and the situation of the relevant foreign trade in detail to find the way to resolve the problems of overcapacity and the path to industrial structures upgrade; and then presents the implementation mechanisms under "the Belt and Road" strategy for resolution to the overcapacity and structure upgrade of Chinese Steel Industry, and finally proposes the implementation mechanisms and guarantee measures to three parties of the government, steel companies and industrial associations respectively. The purpose of this paper hopefully aims to provide reference and guidance to resolve the overcapacity of Chinese Steel Industry and to accelerate the industrial upgrade as well.