22 Metallurgical Process Engineering
Compared to the world steel industry, China also has an advantage in terms
of
trained personnel. Today, China's institutions
of
higher education enroll notably
more new talent
-more
than any other country in metallurgical and material sci-
ence and the related mechanical engineering, electronics, financial and manage-
ment specializations, providing us with a fairly ample labor backup force. More-
over, the experiences gained in initial founding, in weathering fluctuations, and in
handling rapid growth during the fifty years or so years
of
the Chinese steel
industry's development have given us a contingent
of
managers and experts who
are adaptable to the rigors
of
changing situations and a contingent
of
well-trained
employees and staffmembers. These contingents, which constitute a most impor-
tant and valuable foundation for future growth and development, are constantly
growing in size and vigor.
1.5.2 Restrictions
There are,
of
course, restricting factors and risks for the further development
of
the Chinese steel industry, as for example shortages
of
iron, manganese, and
chromium ores, the problems
of
railroad and maritime transportation, the prob-
lems
of
environmental protection, the market competitiveness
of
certain varieties
of
products and certain types
of
enterprises, and even the risk
of
blind and ill-
advised investments by some enterprises. These problems must be studied and
resolved in the course
of
development.
The main policy and overall objective
of
the Chinese steel industry in the new
century should be: to dynamically adapt to market trends and continue to restruc-
ture itself as the principal means
of
enhancing its market competitiveness and
ensuring sustainable development. The measures for implementing this policy and
objective are as follows:
In face
of
fierce domestic and international competition in the steel market, the
Chinese steel industry should, on the premise
of
voluntary and self-determined
participation, gradually promote the process
of
forming groups or strategic alli-
ances
of
steel plants, as this would be conducive to rational deployment, sound
development and sensible investment and discourage blind investment and com-
petition.
It
would also help to exercise rational controls over product sales prices,
raw materials purchase prices, and so forth.
1.5.3 Prospects
of
the Chinese steel industry
China's steel plants should, in the immediate future, orient themselves toward the
domestic market. As far as China's steel plants are concerned, international com-
petition in steel materials is manifested first
of
all as establishing a strong com-
petitive position on the domestic market. In terms
of
China's overall interest, ex-