"In terms of total steel production capacity, the steel industry has clearly shown a state of oversupply." Chi Jingdong pointed out that "the data for the past three years shows that the release of crude steel production has been able to adjust dynamically with domestic and foreign market consumption. Crude steel production in 2015 was 804 million tons, in 2016 it was 810 million tons, and in 2017 it was 832 million tons. The production space that was cleared by the removal of 140 million tons of “ground bar steel” production capacity could be supplemented. There were no people there. The shortage of supply is a concern.” From the demand side, the apparent consumption of domestic crude steel has entered the peak platform area since 2013. In 2017, the apparent consumption of crude steel in China was approximately 760 million tons. In the future, the GDP will change from high-speed growth to medium- or high-speed growth. The consumption intensity of crude steel per unit of GDP and fixed assets investment will decline, and the domestic demand for crude steel consumption will not increase continuously.

The 19th National Party Congress pointed out that after a long period of efforts, the main contradictions in our country’s society have been transformed into the contradiction between the people’s ever-growing needs for a better life and unbalanced and inadequate development. Chi Jingdong pointed out that the transformation and upgrading of the steel industry in China is to solve the problem of unbalanced development and insufficient development. It is to follow the principle of quality first and efficiency first, and vigorously improve the quality and efficiency of development, which is to better satisfy. The increasing demand for the development quality, supply quality, service quality, and eco-environmental quality of the country, people, and society, as well as higher demands on steel quality, longevity, safety, environmental protection, and practicality mean that the steel industry is entering high quality. In the new stage of development, the steel industry must rely on innovation in technology, quality, cost, service, and management to achieve development.