Iron and steel industry to relax foreign investment access policy recently formally settled, butsome analysts pointed out that iron and steel industry overcapacity, supply market environment, toattract foreign capital weaker than usual.In addition, the policy settled means that the Chinese government tends to push the iron and steelindustry to better market competition, part is dependent on government subsidies andprotectionism of state-owned steel mills production environment or more difficult.On March 13, the national development and reform commission disclosed on the official website,approved by the state council, the national development and reform commission, ministry ofcommerce released 22 released in full the foreign investment industrial guidance catalogue repairorder (2015), effective as of April 10, 2015.For the main policy orientation, one is to broaden the admittance of foreign capital, furtheropening up to the general manufacturing, cancel the iron and steel, vinyl, paper making, liftingmachinery, power transmission and transformation equipment and other liquor ratio requirement.Pushing service sectors well-organized, put forward a series of opening up policy in the field ofelectronic commerce, transportation, trade logistics, social services, financial and cultural.For relaxing foreign investment access for the steel industry and canceling the foreign sharesrequest, analysts Liang Yangong said that this means policy tends to changing from focusing onthe admittance of foreign investment access management to market regulation.Once this policy settled, a senior fellow Qiu Yuecheng said, "this policy is help to attract foreigninvestment to restructure the domestic iron and steel enterprise, speed up industry structureadjustment and product upgrading, which is also conducive to China's iron and steel industry tospeed up the integration into the global market, enhance the overall competitiveness of iron andsteel enterprises in China."Zhang Lin, an analyst also said that the domestic steel mills lacking funds can secure the supportof foreign capital, in addition, foreign capital entering can help foreign technology introduced thedomestic steel mills, and even expand foreign sales channels.Analysts Zhang Leize thinks, cancel the foreign shares of the iron and steel and other requirements,for small companies or private companies, the introduction of foreign capital will help to optimizethe investment structure, promote new products, new technology, new technology upgrades.Zhang said at the same time, in recent years, in addition to the international steel giant,arcelormittal and valin iron and steel joint venture, similar case of foreign investment in the ironand steel industry is less, the Chinese steel industry is less attractive to foreign money.Public information, January 14, 2005, valin group, the price of $3.96 per share to the mittal steelcompany sold 656.25 million shares of state-owned legal person shares, accounting for 37.17% ofthe total equity valin iron and steel, clinch a deal the price of 2.59875 billion yuan.In terms of the current steel industry environment, last year, as the decline in the price of rawmaterials such as iron ore, iron and steel enterprise profit situation has improved, espeacially theseamless and erw steel pipe market, but the profit level is still low. Last year, according to theChina iron and steel association, China big medium steel enterprise sales income 3.588207 trillionyuan, down 2.98% year-on-year, profits of 30.444 billion yuan, year-on-year increase of 8.754billion yuan, an increase of 40.36%.Qiu Yuecheng also pointed out that the countries to broaden the steel industry of foreign equityaccounted, shows that countries need to nationalize the steel industry to, the iron and steelenterprises to fully market competition, some rely on government subsidies and protectionism

living environment will be more difficult in state-owned enterprises, some enterprises marketshare will be accelerated, hitherto left industry better tide more obvious.