“We are a major steel-producing country, and we’re well on our way to becoming a powerhouse in the steel industry,” said Li Wei, member of the National Committee of the Chinese People’s Political Consultative Conference, academician of the Chinese Academy of Engineering, and deputy chief engineer of China Iron and Steel Research Institute Group, in an exclusive interview with a reporter from China Metallurgical News during the second expanded meeting of the 6th Council of the China Iron and Steel Association on July 31. Earlier, on July 28, he had attended a symposium convened by the CPC Central Committee for non-Party persons. Speaking to the reporter from China Metallurgical News, Li Wei said that hearing General Secretary Xi Jinping’s important speech firsthand had further strengthened his confidence in building a high-quality steel powerhouse.
　　 The transformation from a steel giant to a steel powerhouse must be driven by problem-oriented development.
　　Li Wei stated that since the beginning of this year, the COVID-19 pandemic has had a significant impact on all sectors worldwide, and China’s steel industry is no exception. However, overall, we have successfully weathered the pandemic’s challenges. The steel industry has firmly implemented the decisions and deployments of the Party Central Committee and the State Council, proactively taken action in the face of pandemic-related challenges, acted decisively and responsibly, and bravely seized opportunities amid adversity, thus forging a path to victory.
　　Li Wei stated that China is the only country in the world with a complete range of industrial sectors, and it also supplies many中国制造 products to the global market. The greatest strength of China’s manufacturing sector—particularly its raw materials industry, exemplified by the steel sector—is its sheer scale; however, China has yet to achieve true strength in this area. There is still much work to be done as China transitions from being a major steel producer to becoming a powerful steel nation. In recent years, the steel industry has undertaken numerous initiatives in this regard, yielding remarkable results, such as promoting green development and advancing intelligent manufacturing.
　　“There are still many challenges on China’s path to becoming a global steel powerhouse, one of which is the insufficient level of industry concentration,” Li Wei pointed out. Although China’s steel output accounts for more than half of the world’s total, China has several hundred steel enterprises, whereas other countries typically have only a handful. While Chinese steel companies have made substantial investments in equipment upgrades, they still have room for further improvement in terms of production processes, product structures, and management efficiency.
　　How can we transform China from a major steel-producing country into a powerful steel nation? Li Wei believes that we must adopt a problem-oriented approach and tackle one difficult challenge after another. Currently, China’s materials industry faces four main issues:
　　 First, there are no suitable materials available. China now has many equipment manufacturing industries that are at the forefront of the world, yet some materials development still lags behind, forcing us to rely on imported materials. Once others “tighten the screws” by restricting supply, we’ll find ourselves in a situation where we simply have no materials available.
　　“A major manufacturing country must also be a major materials country, and a strong manufacturing nation must first and foremost be a strong materials nation. Materials—especially steel—are the backbone of all manufacturing industries; you could say they’re the ‘grain’ of manufacturing. Without this ‘grain,’ there’s no way to transform from big to strong. Major national strategic assets simply cannot do without steel materials,” said Li Wei.
　 　Second, there’s nothing to emulate. “Some companies have suggested providing materials on an as-needed basis, but in reality, the materials must be available first,” Li Wei believes. Currently, after decades of development, China’s materials industry has already taken a leading position in many areas worldwide. It no longer has the foundation to simply absorb, import, and then re-innovate; instead, it needs to rely on independent innovation—from the very basics of research onward. “As China’s materials industry reaches a certain level of maturity, we must shift away from the past development model of ‘one generation of equipment, one generation of materials’ and move toward developing new equipment based on materials research—achieving a ‘one generation of materials, one generation of equipment’ approach. This is precisely the greatest direction for the future development of the materials industry,” Li Wei emphasized.
　　 Third, there are talented people who aren't put to good use. “Having talented people but being unable to put their skills to good use—that’s the biggest problem we’re facing,” Li Wei pointed out. He noted that in developed countries, especially in companies from Japan and Germany, which are renowned worldwide for their quality management systems, products tend to be more refined and carry higher added value.
　　 Fourth, they don't dare to use good materials. Out of fear of taking responsibility, companies are hesitant to use advanced materials—such as those used in aero-engines and precision alloys—in steel products, making it extremely difficult for domestic enterprises to replace imported materials even when they produce high-quality alternatives.
　　 Five Implementation Paths for Further Promoting Technological Innovation in the Iron and Steel Industry
　　A steel power, built on the foundation of being number one in quantity, must further embody our great-power stance and great-power responsibility. From an innovation standpoint, this means having the capability to lead global trends in steel industry technology, the ability to develop advanced products that meet the needs of downstream industrial development, the capacity to ensure the sustained development of the steel industry, and the power to make irreplaceable contributions to the development of both China and the world.
　　How can we further promote technological innovation in the steel industry? Li Wei believes that we can make further efforts in the following five areas:
　　 First, integrate industry-specific scientific and technological innovation resources, adopt differentiated strategies, and promote collaborative development. Both national governments and enterprises have invested heavily in scientific and technological innovation resources. However, these resources have not been effectively integrated, resulting in low-quality outcomes from the innovation efforts—and in some cases, even inefficiency. Take the steel industry as an example: on the one hand, our basic research is still insufficient; on the other hand, we have a large number of research institutes and institutions whose studies often overlap and are highly homogeneous. Moreover, due to differing evaluation systems, resources tend to be scattered and used inefficiently.
　　When it comes to technological innovation, steel enterprises shouldn't aim for large-scale, all-encompassing approaches; rather, they should focus on being small yet highly specialized, pursuing differentiated and personalized development. Each enterprise can become an “invisible champion” in one or several specific fields. Li Wei pointed out that the steel industry is currently moving in a positive direction toward differentiated and personalized development, with nearly every steel enterprise having its own unique characteristics. However, he also noted that this type of development is still in its early stages. In the future, we must ensure that each steel plant truly develops its own distinctive features, ultimately creating a well-ordered competitive landscape.
　　 Second, the division of labor needs to be further clarified. By integrating resources for scientific and technological innovation, we can further promote specialization and division of labor. Research institutes should focus on what research institutes are best suited to do, large enterprises should concentrate on what large enterprises excel at, and small enterprises should stick to what small enterprises do best. By pursuing distinct, specialized paths tailored to their respective categories, we can significantly enhance the efficiency of scientific and technological innovation and ensure that the journey of technological innovation is both stable and sustainable.
　　 Third, we will intensify efforts to cultivate scientific and technological talent and establish a comprehensive system for the commercialization of scientific and technological achievements. In the past, our technological innovation followed a path of digestion, introduction, absorption, and re-innovation, while investment in independent technological innovation and scientific research remained relatively low. Now, as we strive to establish a comprehensive technological innovation system, we must place greater emphasis on technological innovation, further intensify efforts to cultivate scientific and technological talent, and strengthen protection of intellectual property rights—thus ensuring that technological innovations can be effectively translated into productive forces.
　　 Fourth, fully leverage the role of market regulation. China’s steel industry benefits from institutional advantages that are unique to China, enabling it to concentrate its efforts on achieving significant goals. However, the role of the market remains limited. In driving technological innovation, the steel industry must both leverage its institutional strengths and harness the power of the market, further promoting efficient resource allocation and accelerating the pace of technological advancement.
　　 Fifth, further enhance efficiency. “Whether from the perspective of technological innovation or the steel industry as a whole, there’s still room for us to improve our efficiency,” Li Wei pointed out.
　　He further pointed out that, in many cases, people have been doing redundant work. Looking at the layout of the steel industry, the current trend is to keep steel production as far away from cities as possible and relocate steel mills to coastal and riverside areas. In the short term, this approach does help with pollution control and keeps the mills closer to transportation routes. However, from a long-term development perspective, relocation should not be carried out in a one-size-fits-all manner. After all, the short-process development of the steel industry is a major trend, and short-process production will inevitably revolve around urban areas. Rather than dismantling or replacing old steel mills and outdated equipment, it would be far more beneficial to step up efforts in scientific and technological innovation or enhance our capacity for such innovation—using better, newer technologies to achieve greater efficiency and benefits. We should take efficiency and practicality as our sole criteria, and sometimes even elevate this consideration to a strategic level.
　　Li Wei stated that over the past 40-plus years of reform and opening-up, the steel industry has reached another turning point. In the early stages, the focus was on solving the question of "whether we have it"; now, we’ve entered a phase where the key issue is "how good it is." Technological innovation will accelerate China’s transformation from a large steel producer to a strong steel power.