Description
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Over the past decade, the rapid development of the Chinese steel industry has surpassed analysts' expectations both in China and abroad and set new world records in terms of production and trade. Although the rise of Chinese steelmaking mirrors the fast ascent of the overall Chinese economy and basically falls in line with growth trajectories observed in other industrial sectors, many studies have attributed this fast-track development to government intervention. This study aims to offer a comprehensive analysis of the working mechanisms of the Chinese steel industry, its focus being the interaction between steel enterprises and various government agencies. In this context the authors employ the concepts of market-failure and government-failure. In order to provide an accurate and unbiased account of this relationship, the authors base their analysis on an extensive review of official planning documents and financial statements of major steelmakers. Thereby, they try to answer three major questions: 1. What is the nature of state-business nexus in the world's largest steel industry? Who are the relevant actors in this remarkable growth story? What are the mechanisms at work between government agencies and companies that may or may not steer this huge sector in a designated directions? 2. What kind of support does the government offer "its" steel mills? How are the alleged benefits conferred upon companies and what is their extent? 3. What is China's role in the global steel market? In how far does the Chinese steel sector's growth impact upon global trade in finished steel products and raw materials?
