In order to cut the excessive capacity in steel industry, China is actively promoting the mergers and reorganization in steel industry.

The research team at ANBOUND Consulting is of the view that when conducting the mergers and reorganization in steel industry, China can learn from the Japan's steel industry which has a unique alliance and merger model as well as collaboration system.

This will help China to respond flexibly to the uncertain external economic situation, reduce duplication of investment on equipment and cutting overcapacity, focus on technology development and improve the comprehensive competitiveness.