China's steel industry: Its rapid expansion and influence on the international steel industry

Abstract

This paper reviews the development of the Chinese steel industry over the past few decades and its impact on the international steel market. The steel industry has shown a trend to move away from industrialized countries to developing economies, especially some dynamic developing ones. China has played an important part in the relocation of the international steel industry. China is now the world's largest steel consumer and one of the largest steel producers and is rapidly industrializing. This rapid industrialization creates a huge demand for steel. Strong growth in demand, together with China's improving comparative advantage in steel production, has provided a favourable environment for the growth of the Chinese steel industry. This will accelerate the process of the relocation of the international steel industry, providing both opportunities and challenges for the international steel industry.