The successful experience of China's steel production capacity reduction has demonstrated to the world China's determination to cope with overcapacity and has provided solutions to other countries that deal with similar difficulties, and has made positive contributions to the recovery of the world steel industry.

In the process of advancing excess production capacity, we have followed the principle of “retreat by the market, the main body of enterprises, local organizations, and central government support”. On the one hand, we have exited according to regulations and have failed to reach the limits of environmental protection, energy consumption, safety, quality, and technology. The required production capacity, on the other hand, withdrew from the surplus of some non-backward steel production capacity, take measures to actively and steadily defuse excess steel production capacity.

In order to smooth the work of resolving excess capacity and ensure social stability, the central government has set aside 100 billion yuan of special funds to be used for the relocation of employees in the steel and coal industries. In 2016 and 2017 alone, the steel industry placed 272,000 workers. It took five years to dissolve over 100 million to 150 million tons of excess steel production capacity. This is a major decision made after comprehensive consideration of China’s existing steel production capacity, domestic demand, worker placement and social stability, and global economic development. China's responsible attitude and act of maintaining the sustained development of the world economy and responding to global challenges.