Analysis Of Reasons And Proposals On China Steel Industry Overcapacity

Economic growth in the industria l sector is important for stimulating the overallecono my grew steadily, since China is in the late stages of industria lizatio n, and ironand steel industry is known as the industry’s foundation. Acco mpanied with thereform a nd opening up, we take up these strategies that speed up the industria lizationand urbanization process, and start the process of estab lishing a socia list marketecono my, China’s steel industry has been rapid ly developed, for ma ny years amongthe world’s largest steel-producing countries. Now we have taken place the economictransitio n and upgrading, the stee l industry is fac ing serious overcapacity proble m asa large number of market oversupply s ituation. We ca ll the first decade of this centurywas the rise of the stee l industry, and the next decade China’s stee l industry ha ve toresolve excess capacity and seek to upgrade themse lves to enha nce the overallcompetitiveness.In this paper, under the overcapacity background of China’s steel ind ustry,serious excess steel productio n capacity has become a major ha zard on the road ofecono mic long-term hea lt hy develop ment, the adjustment of economic structure andeconomic growth patterns and even the affected people’s happiness. This articleanalyzes started with a case stud ies that is the proble m of Hebei province steelindustry, involves local economic deve lopme nt, governme nt reve nue, enterprises’profits and people’s live lihood.then research the themes derived by overall status, inaccordance with the general a na lys is fro m the specific a nalys is on writing method. Inthe econo mic ana lys is part, us ing the expectation theory,endogenous bus iness cycletheory and ind ustry life cycle model to expla in China ’s steel ind ustry overcapacityand then make an ana lys is o f its effect, whic h ma inly in perspective of market supplyand demand caused production overcapacity and econo mic systems, econo mic polic ylead institutiona l overcapacity. For further research we focus on Capacity p lanninginc lude production la yout, production structure and drive dema nd, besides these, weattempt to the discuss local government and state-owned enterprises’ marketpositio ning whic h resulted the macroeconomic policy governance overcapac ity in thelow e ffectiveness Stud y of the proble m is urge ncy and necessity. on how to reso lveexcess capacity, the paper ma inly according to insist o n market-based instruments,and supple mented with the ad ministrative measures, put forward ratio na l proposals for China’s iron and steel corporates and government to response to excess capacity.