Vale President: supply side structural reforms in China have seen results

On the morning of 18, the mining giant vale of Brazil andPresident of CEO fee Muli said in his speech, Chinese has made great achievementin the supply side structural reform, although the current production capacityto still face some such problems, but as long as the reform of thedetermination and will, believe China be able to overcome difficulties andachieve the supply side structural the goal of the reform, and win-wincooperation with all parties.

Sponsored by the development research center of the StateCouncil, China Development Research Foundation hosted the China DevelopmentForum 2017 held in Beijing in March 18th. Fei Muli is on the side of the supplyside structural reforms sub Forum on the above speech.

2016 China has completed 45 million tons ofiron and steel production capacity target, this year, the capacity of thetarget of more than 50 million tons of production capacity to be moreambitious, these figures add up to the equivalent of the total national steelproduction capacity of the whole Brazil."

Fei Muli believes that if China can successfully resolve tocomplete the 1 tons to 1.5 tons of steel production capacity of the target inthe "13th Five-Year" period, will bring good Chinese of iron andsteel industry and the global steel industry. Although the current productioncapacity to still face some such problems, but as long as the reform of thedetermination and will, I believe China be able to overcome difficulties andachieve the supply side structural reform, and win-win cooperation parties.

Fei Muli also believes that China in the process of promotingstructural reforms in the supply side, shutting down excess capacity is not theonly way. Fei Muli proposed to encourage the use of high-grade steel iron ore,in the construction of large bridges and buildings to raise the proportion ofsteel structure proposal.

At present, China's steel structure in the constructionindustry, the proportion of only 10%, lower than the average level of Asiancountries." Fei Muli said that by upgrading the proportion of high-gradeiron ore and vigorously promote the steel structure, the Chinese steel industryto resolve excess capacity and environmental protection are helpful.