The Explanatory Study of China's Iron and Steel Industry Competitiveness in The Developmental State Theory
DOI:
https://doi.org/10.69989/fk77em14Keywords:
Competitiveness, Inefficiency, Iron and steel industry, Developmental StateAbstract
The low technological and energy efficiency of China's iron and steel industry is not directly correspond with the competitiveness of its products in both domestic and international markets. This study aims to explain the anomaly of the high competitiveness of China's iron and steel industry despite its low production efficiency. Using developmental state theory and qualitative methods, it was found that the Chinese Government sets the direction of development and increasing the competitiveness of its iron and steel industry in every five-year development plan. The government also affects the supply side with protection policies. To compensate the production inefficiencies, the Chinese government provides direct, and indirect, also structural subsidies. On the demand side, the government makes stimulus projects and opens foreign markets through regional free trade agreements that make high economies of scale which decreasing production cost.
Downloads
References
Amsden, A. H. (1989). Asia’s Next Giant: South Korea and Late Industrialization. Oxford University Press. https://doi.org/10.2307/2393359
Johnson, C. (1982). MITI And The Japanese Miracle: The Growth of Industrial Policy, 1925-1975. Stanford University Press. http://www.amazon.com/MITI-Japanese-Miracle-Industrial-1925-1975/dp/0804712069
Nawawi, H. (2005). Metode Penelitian Sosial. UGM Press.
Woo-Cumings, M. (1999). The Developmental State (M. Woo-Cumings, Ed.). Cornell University Press.
Dai, G., & Song, L. (2012). Restructuring China’s Steel Industry and the Implication for Energy Use and the Environment. In L. Song & H. Liu (Eds.), The Chinese Steel Industry’s Transformation Structural Change, Performance and Demand on Resources. Edward Elgar.
Fojtíková, L. (2017). China’s trade competitiveness in the steel industry after 15 years of its membership in the WTO. Economic Annals-XXI, 166(7–8), 16–19. https://doi.org/10.21003/ea.V166-03
Hakim, A., Yandra, A., & Yahya, R. (2024). The Pattern of Economic Development Policies of Presidents with Highest Electoral Accountability Case: Nestor Kirchner and Lula da Silva. JOELS: Journal of Election and Leadership, 5. https://doi.org/https://doi.org/10.31849/joels.v5i1.17644
He, F., Zhang, Q., Lei, J., Fu, W., & Xu, X. (2013). Energy efficiency and productivity change of China’s iron and steel industry: Accounting for undesirable outputs. Energy Policy, 54, 204–213. https://doi.org/10.1016/j.enpol.2012.11.020
Onis, Z. (1991). The Logic of the Developmental State. Comparative Politics, 24(1), 109–126. https://doi.org/10.2307/422204
Winanti, P. S. (2003). Developmental state dan tantangan globalisasi: Pengalaman Korea Selatan. Jurnal Ilmu Sosial Dan Ilmu Politik, 7(2).
Hakim, A. (2011). Respon China terhadap Proteksi Besi dan Baja Amerika Serikat dalam ARRA 2009 [Thesis, Universitas Gadjah Mada]. https://etd.repository.ugm.ac.id/penelitian/detail/50802
Hinton, J. M. (1986). China’s Steel Industry: The Policy Implication of Technology Transfer to the People’s Republic of China . The RAND Graduate School.
AIST. (2007, July 31). New Report Details Chinese Government Subsidies to its Steel Industry. Association for Iron and Steel Technology.
Haley, U. C. V. (2007). Shedding Light on Energy Subsidies in China. Alliance for American Manufacturing.
KPMG China. (2011). China’s 12th Five-Year Plan: Iron and Steel. http://www.chinamining.org
OECD. (2009). Recent Trends in Steel Trade & Related Policy Measures, 67th Steel Committee Meeting Paris.
SEAISI. (2021). China’s Steel Export to ASEAN-6. South East Asia Iron and Steel Institute.
World Socialist Web Site. (2005, October 22). Workers Struggles: Asia, Australia and the Pacific.
World Steel Association. (2025). Major importers and exporters of steel 2024. World Steel in Figures 2025.
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Amri Hakim, Suryaningsih Suryaningsih (Author)
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Copyright and Licensing Notice
Authors publishing in Jurnal Ilmiah Ekotrans & Erudisi (JIEE) retain copyright over their original scholarly works and grant the journal the right of first publication. Published articles are distributed under the Creative Commons Attribution-ShareAlike 4.0 International License (CC BY-SA 4.0).
Under this license, users are permitted to copy, redistribute, share, reproduce, translate, adapt, and build upon the licensed material for any lawful purpose, including commercial use, provided that appropriate credit is given to the original author(s), the initial publication in JIEE is acknowledged, a link to the license is provided, and any modifications are indicated. When adapted material is shared, the adaptation must comply with the applicable ShareAlike licensing requirements.
No additional permission from the authors or the journal is required for uses authorized by CC BY-SA 4.0. Users must not impose additional legal restrictions or technological measures that prevent others from exercising the rights granted by the license.
Authors may enter into separate, additional non-exclusive arrangements for the distribution of their published work, including deposit in institutional repositories, scholarly repositories, and academic websites, provided that the original publication in JIEE is appropriately acknowledged and the applicable licensing terms are respected.
Third-party materials that are expressly excluded from the article's Creative Commons license remain subject to their respective copyright and permission requirements. The license does not override applicable privacy, personality, or other rights.
For copyright-related inquiries or reports of possible infringement, please contact the JIEE Editorial Office.
Official License: https://creativecommons.org/licenses/by-sa/4.0/
