Research On International Cooperation Of China's Capacity Under "The Belt And Road" Initiative

Now the global economy is entering a period of slow growth,Countries are trying to take steps to stimulate domestic economies.After the global financial crisis in 2008,stimulated by the “4 trillion” policy,enterprises overinvested,the problem of overcapacity is becoming a prominent problem hindering economic development.The steel industry is a basic industry that is related to the national economy and people's livelihood,but it is also the industry with the most prominent,typical and most important government concerns about overcapacity.Developing countries along “the Belt and Road” are at the peak of infrastructure construction,their demand for steel capacity will continue to increase.At present,with the aid of “the Belt and Road”initiative platform,strengthening cooperation between China and countries along “the Belt and Road” on steel production capacity can contribute to the adjustment and upgrading of China's industrial structure and the industrialization of developing countries along “the Belt and Road”,and promote the two sides of a new round of economic growth.Therefore,it is of great significance to study the steel production capacity cooperation between China and countries along “the Belt and Road”.Firstly,this paper starts from the concept and connotation of international capacity cooperation and puts forward that the core of international capacity cooperation is win-win situation,China should strengthen its strategic docking and complementary docking with industrieswith host countries.We should adhere to the five development concepts of innovation,coordination,green,openness and sharing to guide international capacity cooperation.And this paper outlines the realistic basis of international capacity cooperation,it is pointed out that China should accelerate the promotion of global value chain status and create new comparative advantages;Secondly,this paper uses the cost function method to calculate the capacity utilization rate of China's steel industry,and the empirical results show that,China's iron and steel industry production has far exceeded market demand and development demand,and the phenomenon of excess capacity is serious.Then,this paper forecasts the change of China's steel demand under “the Belt and Road” initiative through vector auto regressive model,finds that production capacity cooperation with countries along“the Belt and Road” can effectively boost the international demand of China's steel industry;Thirdly,this paper analyzes the opportunities and paths of developing iron and steel production capacity cooperation between China and countries along the“belt and road”.The cooperation opportunities are highlighted by the large demand for steel in developing countries along “the Belt and Road” and the fact that China's cooperation with countries along the routes can complement each other's profit and loss,and this paper proposes that we can carry out steel production capacity cooperation with countries along the routes through trade cooperation and foreign direct investment;Fourthly,this paper describes in detail the international experience of capacity cooperation in steel industry of Europe,Japan and the United States.Europe,Japan and the United States have taken a number of measures to resolve the excess steel production capacity,studying the path and effect of resolving excess capacity is of great reference value to China's iron and steel industry in the transition period;Finally,combined with the previous research results,this paper puts forward the policy suggestions on the international cooperation of China's steel production capacity under the “one belt and one road” initiative: Strengthening foreign policy communication and improving the right of speech;Innovation of “Going Out” model of iron and steel production capacity;Perfecting financial services support system;Promoting investment and trade facilitation;Accelerate the integration of the steel industry into the global industrial value chain.