China, the world’s largest steel producer, is facing weak domestic demand. To deal with this problem, the country is using two main strategies: exporting large amounts of steel and building factories overseas. 

In 2025, China’s steel exports reached a record level of 119 million tons. At the same time, China used the Belt and Road Initiative to speed up the relocation of its production capacity, expanding investments from Southeast Asia to Africa and the Middle East.

For example, Tsingshan Holding Group has built a steel base in Zimbabwe with an annual capacity of 5 million tons. Meanwhile, Xinfeng Steel has invested more than US$10 billion to develop an integrated industrial zone in Egypt, aiming to produce high‑value steel for industries such as automobiles and energy. 

This expansion strategy allows China’s steel production capacity to enter markets across Eurasia and Africa, creating strong competitive pressure and new challenges for steel companies around the world.