China believes that the weakening global demand for steel since the 2008-09 financial crisis is the "fundamental cause" of excess capacity in the steel and related industries, which is a common challenge for the world.

But China's domestic efforts in reducing overcapacity in the related sectors and its Belt and Road Initiative, which is actually helping boost steel consumption, need global cooperation and coordination.

China laid out its position on Monday at the High-Level Symposium on Excess Capacity and Structural Adjustment in the Steel Sector in Brussels.

Zhang Ji, China's assistant minister of Ministry of Commerce, heads a delegation to the talks, organized by Belgian government and OECD.

"The Chinese side believes that since the international financial crisis, economies have suffered a notable slowdown, sluggish recovery, and a decline in infrastructure construction, industrial development and household consumption, leading to weak global demand for steel," according to the position paper.

"This is the fundamental cause of excess capacity in the steel and some other industries," the document said.

Before the international financial crisis in 2008, strong growth of the world economy was conducive to the increase in the production capacity of the global steel industry.

"Any other analysis and judgment on the steel excess capacity will make us lose direction and fail to find a correct solution," the paper was cited as saying.

The Chinese side took the view that the OECD Steel Committee is a forum for global dialogue and communication on steel, and the nature of the session should be a symposium rather than a formal official meeting.

China also said that the excess capacity problem currently facing the steel sector is a universal one for all steel-producing countries in the world.

"It is a common challenge that needs to be confronted by all countries together. The shared problem needs to be tackled with shared efforts. Pointing fingers at one another doesn't help solving it," the paper said. "Therefore, we believe that all parties should take part in the Symposium in the spirit of cooperation and discuss excess capacity issue in the steel sector constructively."

China is now making tremendous efforts and considerable sacrifices to cut its overcapacity. During the 12th Five-Year Plan period from 2011-2015, China shut down outdated facilities with total production capacity of over 90 million tons; in the coming five years, China will further reduce crude steel capacity by 100 million to 150 million tons, involving the reemployment of 500,000 people.

"The measures we have taken and the effects they produce have been fully recognized and appreciated by many countries," Chinese government said in the paper.

China hopes more countries would take proactive measures in line with their respective national conditions and stage of development, jointly contributing to resolving excess capacity in the steel industry, according to the position paper.

China believes that countries need to work on both the supply side and the demand side, and vigorously expand the demand to tackle excess capacity.

"China's Belt and Road Initiative set out a vision to strengthen the connectivity and infrastructure development of countries along the route. This has fuelled their demand for steel, and delivered win-win outcomes through social and economic development," the paper was cited as saying.

To contact the reporter: fujing@chinadaily.com.cn