Study On The International Operating Of China's Iron And Steel Industry Under New RMB Exchange Rate Mechanism

Iron and steel industry is the backbone industry of national economy. Along with the standing development of our country's socialism market economy, the status and function of iron and steel industry are increasingly important. China has been the biggest steel producer in the world of nine years after annual output reached more than a hundred million metric ton in 1996. The steel output is 349 million metric ton in 2005, 30% of the world's total steel output. But meanwhile, comparing with developed country of iron and steel industry we still have big gaps, especially on product variety, scale benefit, international competition power and industry centralization although rapid development of output. It is the serious obstacle to persistent and healthy development of China's iron and steel industry. On Jul 21^st, 2005, China central bank said the start of building a managed floating RMB exchange rate mechanism which is based on market supply and demand and is adjusted in relation to a basket of major foreign currencies. The RMB yuan to US dollar pegging system is switched to a more resilient RMB exchange rate. This is an important milestone of our country's RMB exchange rate mechanism reform. It will take far-reaching effect on national economy included iron and steel industry.Firstly this article summarizes enterprise international operating and theories related to it, makes introduction on international operating of world famous iron and steel enterprises, makes analysis on situation and difficulties on international operating of China's iron and steel industry, demonstrates the advantage and necessary of international operating of China's iron and steel industry. Then through analyzing penetratingly on the influence of international trade, international merge and investment abroad of China's iron and steel industry under China's new RMB exchange rate mechanism, and comparing internationally on relations between iron and steel enterprise international operating and exchange rate mechanism, concludes new RMB exchange rate mechanism is propitious to international operating of China's iron and steel industry from point of long term view. Thirdly expatiates international operating management idea of China's iron and steel industry, puts forward development direction and suggestion of international operating of China's iron and steel industry: elevating the total international...