In 2017, the profit of Shagang Steel, a private-owned company, was RMB 19.274 billion, with a profit rate of 8.76%. The profit of Baosteel, a state-owned enterprise, was RMB 14.0 billion, with a profit rate of 3.02%. Statistics show that in 2017, Shagang Steel can be said to have won over Baosteel. Anbound believes that in the steel industry, the Chinese government and the market must accept the fact that private enterprises will surpass the state-owned enterprises. This also provides ideas for the reform of state-owned enterprises in competitive industries, like the opening-up the market competition, allowing private capital to participate in the mixed-reform of state-owned enterprises or even controlling state-owned enterprises.