The Problems And Counter Measures Of Implementation Of Iron And Steel Capacity Control Policies In China

The steel industry of China has developed more than 60 years, and China has become the biggest iron and steel country. However, steel overcapacity problem has constantly perplexed the government, which not only caused huge waste of resources, but also affected the normal and stable development of economy and society.Since 1990s, many steel capacity control policies have been established, but those policies didn’t play an important role. In 2012, steel overcapacity problem caused another industry crisis. Adjusting excess capacity has become a hot issue of national policies.Firstly, this paper combed the historical evolution of steel capacity control policies in China and introduced the current situations of excess capacity and capacity control policies. Through analysis, the execution of steel industry control policy has some problems:effects of policy implementation are not good; policy implementation deviation destroys the market mechanism; eliminating outdated capacity is difficult; relevant policies have negative effects. By building policy implementation model of steel capacity control policies in China, the causes of policy execution problems are explored:the value orientation of policy implementation subject twists; policy subjects have interest conflicts; the policy objects avoid policies’ regulation; goal conflicts in policy environment; policies lack of incentive and guiding functions.To solve the problems of policy implementation, the keys are ensuring the value orientation of policy implementation subject public, reforming evaluation system and the financial and taxation systems and preventing local governments to maximize their own interests. In addition, the government should coordinate the relationship between the central and local governments and restrain game playing behaviors of local governments. The policy object’s enthusiasm should be strengthened. Furthermore, policy environment should be unified and perfect. The relevant supporting measures should be established to ensure the unification of the policies’ goals and the effect. In the last, steel capacity control policies should play an important role of motivation and guiding.