Research On The Belt And Road Initiative And The Development Of China’s Steel Exports

Since the Belt and Road Initiative was put forward in 2013,it got a lot of attention from international society because it is the important opportunity that drives up the development of economy after Chinese economy transfer to new normal.The implementation of the Belt and Road Initiative has an important effect on economy,polity and culture of China and other countries.Enhancing the region cooperation and trade is an important content of the Belt and Road Initiative,so that it has a huge impact on Chinese international trade,especially in export.It not only developed China’s overall economic,but also had a good effect on our steel industry.In recent years,our steel industry is in the depressing status,a lot of company has bankrupted,and the main reason is the excess capacity.The implementation of the Belt and Road Initiative offering a solution to improve the excess capacity by making communication and business between China and the Belt and Road Initiative countries.Because among the Belt and Road Initiative countries,there are some new emerging and undeveloped ones which need a lot of steel product to build the infrastructures,and there also are some developed countries whose steel industry doesn’t have the comparative advantages.This essay explained how the Belt and Road Initiative affect China’s steel industry in two aspects,theoretical analysis and empirical analysis.In theoretical part,to explain the necessity of China’s steel industry takes the advantage of the Belt and Road Initiative,the writer analyzes the situation of China’s steel industry and the Belt and Road Initiative,combined the classic theories and literature review.In empirical analysis,by analyzing the trading data and investment opportunity of Chinese steel product export in recent year and some of the Belt and Road Initiative countries’ development strategy,the writer found it is true that China exported more steel product to the Belt and Road Initiative countries than other countries,and the development strategy of the Belt and Road Initiative countries provide more opportunity to China.Besides,the writer used the data of Chinese steel export to 146 countries including USA,Japan,Korea,Vietnam and other countries,whether it is the Belt and Road Initiative country,GDP and average tax rate of importing steel product from China to build regression model to analyze the relationship of them.The result shows that GDP and whether it is the Belt and Road Initiative country have the significant influence to the amount of Chinese steel export,however average tax rate of importing steel product from China does not.The result shows that if China can take the opportunities made by the Belt and Road Initiative,the excess capacity of steel industry can be improved well.According to the two parts analysis,the essay also gives some relevant suggestions at the end which hope to helpful to solve the excess capacity of China’s steel industry by taking the advantage of the Belt and Road Initiative.