The Secret of China Keeping Leading the Export of Steel Trade Since 21 Century

Abstract

The foundation was set by early industrialization, post-1949 emphasis on heavy industries, and post-1978 economic reforms.China emerged as a significant exporter of steel in the 21st century due to several factors that enhanced its competitiveness. These factors include the presence of abundant reserves of iron ore, a substantial labour force, and developments in technology. As a result, China successfully debunked the prevailing notion of relying solely on domestic resources and established itself as a prominent player in the global steel market. This paper examines China's global steel market dominance due to historical foundations, economic reforms, and competitive advantages. This study employs the H-O model and the supply and demand model, utilizing secondary data from various sources. The samples for this study include China's total population, China's GDP, Australia, and Europe and the United States. The type of data utilized in this research is secondary data, and it involves characteristics such as bar charts to observe the steel industry's development in China, Australia, and Europe and the United States. The data encompasses steel resource content, total steel import and export, total steel production, and the environmental policy stringency index. This paper proposes a novel avenue for future research, focusing on the integration of environmental factors into models explaining international steel trade dynamics. The investigation aims to shed light on the influence of environmental standards on trade patterns and, consequently, advance our comprehension of China's position within the global steel market.