Study On The Steel Industry De-overcapacity In Hebei Province On Structural Reform Of Supply-side

In recent years,the speed of global economic growth is very slow.At the same time,China’s economic development has entered a new norm where the speed of growth rate is switched from high to medium.Therefore,it’s in the throes of structural readjustment which leads excess production capacity which was constructed in accordance with the original comparative advantage during the period of rapid economic growth.Hebei province is the first steel producing province in our country of which the iron and steel production has ranked the first in our country during the last fifteen years.Faced with the overcapacity problem,a feasible solution is necessary which is suitable for the provincial situation.While the supply side structural reform is an effective way to solve the structural imbalance between supply and demand where the policy of solving overcapacity problem can be studied.And it’s important for solving the overcapacity problem in Hebei iron and steel industry.This paper firstly analyzes the concept of structural reform and overcapacity.Then it states the present situation of the development of Hebei iron and steel industry and it analyze the performance,harm and causes of overcapacity to find out the achievements and deficiencies of the “cut excessive industrial capacity” policy of Hebei province in recent years.At the same time,it’s necessary to draw lessons from the United States,Japan and European developed countries in managing overcapacity.Finally,it puts forward the countermeasures and suggestions of “cut excessive industrial capacity” policy in the supply side structural reform.