China's steel industry has a lot to offer in the Belt and Road Initiative

We will expand international cooperation on production capacity and promote Chinese manufacturing and Chinese services to go global." The steel industry, as a strong manufacturing industry in China, is a key area for expanding international cooperation on production capacity. Especially in the development of "One Belt and One Road" construction, from resource development to steel production capacity cooperation and processing supporting services, the steel industry has a broad market and huge development space.

China's steel industry has outstanding advantages in going global

Overseas investment in mining and steel has yielded initial results. Chinese steel enterprises have made full use of the resource conditions and market potential of the countries along the Belt and Road, actively invested in the development of iron, manganese, chromium and other mineral resources, acquired or invested in the construction of steel plants, and promoted international production capacity cooperation. Enterprises represented by Sinosteel Group, Shougang Group, CITIC Group and Hesteel Group have successively invested and developed projects in Australia, Peru, South Africa, Canada and other countries, such as the Chana Iron Mine, the Sino Australian Iron Mine, the Montbele Manganese Mine in Gabon, and the Samanco Chrome Industry in South Africa. Up to now, Chinese enterprises have invested in nearly 40 overseas iron ore projects, with a total investment of more than US $30 billion. In addition, the Serbian Smederrewo Steel plant acquired by Hesteel Group, the Indonesian nickel-iron project of Qingshan Group, the 3.5 million ton joint steel project of Guangzhou Shenglong Metallurgical MazhongKuantan Industrial Park, and the overseas investment steel plant projects of Hebei Wen 'an Iron and Steel, Delong Nickel Industry and Delong Iron and Steel are progressing smoothly.

Iron and steel materials comprehensive service development level is high. With the gradual completion of several new general airports along the "Belt and Road" and the further construction and improvement of the Eurasian railway network, the demand for steel and related supporting industries will increase, mainly including steel deep processing, energy and environmental protection, logistics, intelligent manufacturing, trade and engineering design and other related industries serving the steel industry. Taking steel deep processing industry as an example, steel deep processing is an inevitable choice for steel enterprises to complete the transformation from steel material manufacturers to steel material comprehensive service providers. At present, our country has built more than 450 professional, well-equipped steel processing and distribution centers with a certain scale, with an annual steel processing and distribution capacity of more than 50 million tons, mainly distributed in South China, East China, central South China, Beijing and Tianjin and other economically developed areas. With the advancement of the construction of "One Belt and One Road", the steel processing and distribution industry in the western region of our country and the countries along the "One Belt and One Road" will face a huge market space.

Downstream industry chain to boost the steel industry to go out. The development of downstream industries such as construction industry is inseparable from the iron and steel industry, and the development of infrastructure construction of the "Belt and Road" and the equipment manufacturing industry such as energy, high-speed rail and nuclear power is also inseparable from the contribution of domestic steel. The domestic steel market share has increased from 84.3% in 2000 to 98.2% in 2017. In the future, as the downstream industry continues to develop, especially the manufacturing industry to the high-end, the downstream industry will also go out better with the "Belt and Road", which will also drive the steel industry to go out to a deeper and higher level.

China is a big importer of raw fuel. Our country iron and steel industry needs a large amount of import iron ore, coal (especially coking coal), manganese ore, chromium ore and nickel ore every year. Iron ore, for example, imported 1.075 billion tons in 2017, accounting for about 60 percent of global iron ore trade. The source countries of imports are mainly Australia and Brazil, and the import volume accounts for 83.5% of the total import volume, all by sea. The huge demand for raw fuel in the development of China's steel industry has not only driven the rapid development of the global mining market, but also promoted the prosperity of the shipping market, providing impetus for the economic development of relevant countries.

We will advance international cooperation on steel production capacity through four paths

First, we need to optimize our layout and strengthen our strengths. Fully grasp the market opportunities, fully understand the investment environment, early focus on promoting advanced domestic equipment, products, technology to go global. Encourage and support advantageous enterprises to actively control iron ore resources and layout iron and steel production bases in areas with rich resources, good infrastructure and stable political environment, and explore the establishment of multinational iron and steel companies through acquisitions, mergers and alliances. Draw lessons from overseas investment projects in recent years, and do a good job in project investment risk prevention and control. Guided by enterprises and in accordance with commercial principles, we will flexibly use various "going to sea" modes such as overseas economic and trade parks, project general contracting and third-party cooperation, carry out a number of major cooperation projects in key areas along the "Belt and Road" in an orderly manner, connect domestic production capacity with foreign markets, pay attention to mutually beneficial cooperation with local governments and enterprises, and create good economic and social benefits. To achieve mutual benefit and common development. Cultivate a number of international high-end talent service teams to ensure the smooth implementation of the going-out project.

Second, to go to sea in combination for win-win cooperation. In the process of going global, the iron and steel industry should pay attention to forming synergy, and promote the iron and steel industry and upstream and downstream and related industries, such as energy conservation and environmental protection, finance, logistics, engineering design, comprehensive utilization of resources, trade and other "collaborative" going global. The "collaborative" way of going global is easier to obtain financial support, and it also helps enterprises reasonably avoid the economic, political and legal risks that may be involved in overseas investment in investment decisions. Therefore, iron and steel enterprises in the "Belt and Road" international production capacity cooperation process, by promoting the upstream and downstream and related industries, to achieve "collaborative" going out.

Third, do a good job in top-level design and long-term planning. In order to effectively and orderly promote international cooperation on iron and steel production capacity, relevant departments should do a good job in planning, strengthening coordination, improving policies and improving services. First of all, we need to formulate a medium - and long-term strategic plan for international steel production capacity cooperation under the Belt and Road Initiative to provide clear guidance for enterprises and avoid stampeding and disorderly competition. At the same time, China will strengthen communication and coordination with relevant countries, enhance mutual trust, build a close and pragmatic partnership, and explore the establishment of a long-term cooperation mechanism.

Fourth, the "nine changes" coordination to meet demand. In the phase of reduction development, we should continue to promote the high-level green, orderly, quality, standardization, differentiation, service, intelligence, diversification and internationalization "nine" coordinated development of China's iron and steel industry. Driven by the structural reform of the supply side, we will guide the transformation and upgrading of steel enterprises, increase the support for innovative steel enterprises, improve the effective supply level, and meet the demand for steel products of China's manufacturing power, innovative country construction, and the construction of countries along the "Belt and Road".