Representatives and Members of the Two Sessions Discuss New Paths for High-Quality Development in the Steel Industry

The steel industry is a pillar of the national economy and a main battlefield for the "dual carbon" strategy. During the 2025 Two Sessions, the high-quality development of the steel industry became a hot topic among representatives and committee members. Over 20 representatives and committee members from the steel industry submitted more than 40 targeted proposals, covering areas such as low-carbon technology breakthroughs, capacity management, fiscal and tax optimization, intelligent manufacturing, and international cooperation. These proposals reflect deep thinking on the future high-quality development of the steel industry.

1. Green and Low-Carbon Transformation: From Technological Breakthroughs to Full-Chain Collaboration
Low-carbon technology R&D and platform construction.
Several representatives and committee members emphasized that the "carbon neutrality" of the steel industry needs to rely on national-level innovation platforms. Committee member Hu Wangming proposed the establishment of a "National Green and Low-Carbon Innovation Platform for the Steel Industry" to promote the sharing of key technologies such as hydrogen metallurgy and hydrogen-rich injection, as well as research on systematic solutions. Representative Zhao Minge suggested the establishment of a "National Low-Carbon Technology Innovation Center for the Steel Industry," supported by special funds for industry-wide technological breakthroughs. Representative Dong Caiping proposed a collaborative mechanism of "government guidance + enterprise leadership + academic support + financial assistance," with the establishment of a special fund to support low-carbon technology R&D.

Energy structure optimization and energy storage technology application.
Representative Liu Huaiping suggested the development of diversified energy storage technologies (such as compressed air energy storage and flow batteries), deeply integrating energy storage systems into the comprehensive energy networks of steel enterprises, and linking them with scenarios such as PV and waste heat recovery to improve the absorption rate and economic efficiency of green electricity. Committee member Qian Gang emphasized the integration of new energy and steel production through "specialized, refined, and innovative" enterprises, such as the green manufacturing of special steel for aviation.

Standard system and carbon market linkage.
Representative Hu Shue proposed the construction of a three-dimensional framework of "policy incentives + standard constraints + market guidance" to promote the carbon footprint certification of steel products and their alignment with international standards. Representative Meng Fanying called for improving the management of pilot projects (pilot projects refer to the intermediate testing phase from laboratory R&D to industrialization) and accelerating the application of rare earth materials in low-carbon technologies. In addition, several representatives suggested including the steel industry in the carbon market trading system, using carbon pricing mechanisms to force emission reductions.

The above proposals reflect a shift from single technological breakthroughs to low-carbon collaboration across the entire industry chain. However, issues such as long R&D cycles (e.g., hydrogen metallurgy requires over 10 years), high costs of green electricity (currently accounting for less than 5% of steel production), and inconsistent carbon accounting standards still require long-term coordination between policy and market.

2. Technological Innovation and Industrial Upgrading: The Path to Cultivating New Quality Productive Forces
Construction of original technology sources.
Representative Zhao Minge proposed improving the supporting mechanisms for original technology sources, including diversified funding (e.g., government-guided funds, joint corporate investments), optimized resource allocation (e.g., targeted opening of national key laboratories), and deepened industry-academia collaboration (e.g., university-enterprise joint laboratories). Representative Wu Hanqi called for building a domestic industrial operating system ecosystem, promoting its application in metallurgy, mining, and other scenarios to reduce dependence on foreign technologies.

Intelligent manufacturing and digital transformation.
Representative Wen Fei suggested the introduction of robotics, big data, and IoT technologies to achieve production automation and smart logistics. Representative Zhang Ronghua proposed the construction of "lighthouse factories," optimizing steel enterprise production processes through AI models and developing intelligent sorting systems to improve solid waste recycling efficiency.

High-end materials and export competitiveness.
Representative Zhu Xiaokun suggested refining the export tax rebate policy for high-end special steels (e.g., mold steel, high-speed tool steel) to consolidate international market share. Representative Li Jianyu proposed strengthening the global industry chain layout, enhancing the proportion of high-end products through "bringing in" (technical cooperation) and "going out" (establishing overseas bases).

The core of new quality productive forces lies in the deep integration of technological innovation and industrial upgrading. For example, the development of domestic industrial operating systems (with a localization rate of less than 10% in 2024) could reduce production costs by about 20%-30%, and the implementation of export tax rebate policies for high-end special steels is expected to boost annual export growth by 15%.

3. Industry Governance and Global Layout: The Path to Structural Reform
Capacity management and mergers and acquisitions.
Representative Tan Chengxu suggested establishing a new capacity management mechanism, supporting mergers and acquisitions through policies, and phasing out outdated capacity. Representative Wang Shuhua proposed implementing tax incentives such as accelerated depreciation and R&D deductions for environmentally compliant enterprises (creating A-level standards), forming a mechanism of "supporting the superior and eliminating the inferior." It is estimated that if 50 million mt of inefficient capacity is phased out by 2025, industry concentration (CR10) could increase from 42% to 50%.

Fiscal and tax optimization and business environment improvement.
Representatives from multiple provinces suggested simplifying mining rights approvals and unifying local tax standards. Committee member Zhao Jianze called for strengthening the protection of coking coal resources (an important raw material for the steel industry) and improving industry concentration through fiscal and tax leverage. Representative Zhao Minge further proposed optimizing the export tax rebate policy for steel to support high-end products in international competition.

Globalization and resource security.
Representative Li Jianyu suggested expanding the "Belt and Road" market and leveraging the Hunan International Trade platform to expand overseas business. Representative Sheng Genghong proposed integrating iron ore resources, supporting large enterprises in developing overseas mines through agreement transfers, and reducing the dependence on imported iron ore (currently over 80%).

The current steel industry faces a typical imbalance of "insufficient high-end and surplus low-end." The proposals from representatives and committee members indicate that the future development of the steel industry may focus on "two-pronged efforts": internally optimizing the capacity structure through market-oriented means, and externally reshaping the global industry chain position through technological advantages (e.g., innovation centers) and standard outputs (e.g., carbon footprint certification).

4. Conclusion: Strategic Choices for China's Steel Industry Toward High-Quality Development
The proposals from the representatives and committee members reveal three main transformation lines for the steel industry: greening, intelligentization, and globalization. Greening is not only a technical issue but also an institutional innovation (e.g., carbon market linkage); intelligentization requires breaking the traditional mindset of "emphasizing hardware over software" and focusing on scenario-based AI and domestic system ecosystems; globalization requires shifting from resource dependence to technological standard outputs. At a deeper level, these proposals reflect the logic of China's steel industry transitioning from scale expansion to quality revolution. On one hand, policies need to strengthen top-level design (e.g., new capacity management mechanisms), and on the other hand, enterprises need to actively embrace change (e.g., "lighthouse factory" construction). In the next decade, top-tier enterprises with technological, financial, and green advantages will accelerate market integration, while small and medium-sized steel mills will face transformation or exit pressures.

In summary, the high-quality development of the steel industry is not only an industrial issue but also a reflection of national strategic capabilities. Only through innovation-driven and structural reforms can "carbon constraints" be transformed into "new momentum," securing a commanding position in the global industrial revolution.