The Status And Potentialities Of International Capacity Cooperation In China’s Steel Industry Under The "Belt And Road" Initiative

In 2013,China proposed the "Belt and Road" initiative.It aims to combine the advantages of China’s capacity and technology with the advantages of resources and market demand in countries along the route.The ultimate goal is to promote the economic development of these countries.International capacity cooperation is the core content and important carrier of the "Belt and Road" initiative.In 2017,the trade volume between China and the countries along the route increased by 18%year-on-year.The capacity cooperation has achieved remarkable results.At present,overcapacity in the steel industry has caused that the transformation and upgrading of China’s steel industry is difficult,and that steel products frequently suffer from trade remedies.The "Belt and Road" countries are accelerating economic development and improving infrastructure construction.In the future,the demand for steel products will increase significantly.There is huge room for cooperation between the two sides.Therefore,in the context of the "Belt and Road",it is of great significance to export China’s advantageous steel capacity through international capacity cooperation for the transformation of China’s domestic economy and the optimization of external economic and trade environment.In addition,it can meet the needs of economic development of the countries along the route.It is a mutually beneficial and win-win move.Based on the analysis of the status of supply,demand,capacity and international competitiveness in China’s steel industry,and the status of steel demand in countries along the route,this article discusses the possibility of international capacity cooperation between China with these countries in steel industry.By calculating the relative trade advantage index,the revised revealed comparative advantage index and the trade complementarity index,this article discusses the factors affecting international capacity cooperation in steel industry.Based on the extended gravity model,the article selects Chinese steel exports to the "Belt and Road" countries from 2007 to 2016 as the expla:ined variable.The fixed-effects model and the fixed-effect vector decomposition model were used to carry out the regression analysis of the whole sample and the sub-region samples.The results show that,the steel international capacity cooperation is positively correlated with steel imports and bilateral trade compler mentarity index is a negative correlation with the relative trade advantage index.The empirical results of the gravitational factors consistent with the existing research.Based on the above conclusions,this article puts forward some suggestions for international capacity cooperation in steel industry:choosing the right partner countries,implementing the reform of the steel supply side,extending the overseas steel industry chain,promoting trade and investment facilitation with the"Belt and Road"countries.