On April 8, LI Xinchuang, Director of the Institute of Metallurgical Industry Planning and Research delivered a speech entitled “Challenges and Opportunities for Iron and Steel Produce in China and Beyond", under Peking University Public Policy Forum International.
Prof. FU Jun, Academic Dean of the South-South Insitute introduced that: “China has undergone a remarkable process of industrialization and modernization, and to support all of that, the steel industry is very important.” He hoped that students would have an in-depth understanding of what has transpired in China's iron and steel industry at this forum.
LI Xinchuang addressed extensively on the Forum.LI Xinchuang shared his insights on China's iron and steel industry development and had a lively discussion with students of the Institute of South-South Insititute of Cooperation and Development on exploring cooperative opportunities between China and other developing countries in the current global trade situation.
China's steel industry has the largest domestic demand market in the world, and China's steel consumption accounted for about 50% of the global steel consumption in 2017. Why is China's steel market so competitive? China's steel industry has achieved “5Gs": Good Product, Good Price, Good Scale, Good Service, and Good Brand and is one of the most globally competitive industries in the manufacturing sector, which is due to its complete and comprehensive industrial system, a large market of demand and supply, abundant talent resources, advanced technology and equipment, and economic growth stability. China's steel industry is indispensable for the rapid development of the national economy, as a flagship of the aircraft carrier, Li Xinchuang explained.
There are three major trends in the development of the global steel industry at the new phase: 1) the advancement of new low-carbon technology research and development , 2) the industrial transformation and upgrading under the background of excess global steel capacity and increasing trade friction, and 3) the international industrial cooperation represented by the Belt and Road Initiative.
China will enter the era of “cutting off production capacity”, which could effectively solve the “low-quality steel” problem that has plagued the steel industry for many years. China's iron and steel industry will play a greater role in quality improvement and environmental protection. Meanwhile, China will further stimulate the vitality of state-owned steel enterprises by developing a mixed-ownership system. “China should take the advantage of the global trend and seize new opportunities for industry development”, utilizing the historic opportunity of “One Belt One Road Initiative” for more global cooperation.
Students, governmental officials from devleoping countries, showed great enthusiasm seeking for cooperation opportunities in the steel industry between their countries and China. LI Xinchuang responded that market, supply, and infrastructure are essential and we will have great opportunities to cooperate with African countries and other developing countries in the future.
Talking about the trade friction between China and the U.S, He responded that the total exports of steel from China to the U.S are very small, so China’s steel industry will be little affected. Prof. FU Jun said: “America used to see China as a ‘competitor’, but now sees China as a ‘rival’. The difference between the two terms is that rivals compete without rules. Opening the global market could benefit the world, but now America has lost its patience.”