Game and Strategy of China in the World's Negotiation of Iron Ore Price

摘要

Chinese needs of iron ore have been increased sharply since 21st century and China is the biggest importing country of iron ore in the global. The uncertainty of the iron and steel industry has greatly increased with fluctuations in the iron ore global market, which has been a critical topic for the Chinese iron and steel industry. The price is also relating to the sustainable development of the iron and steel industry. In order to explore the Chinese advantage of iron ore pricing in the world trade, in this paper, the negotiated price of international iron ore is regarded as a starting point, using game theory to analyze the demand of iron ore between Japan and China, besides the process and results of price game between China and the Cartel, and explain the genesis of the current price of the game, the listed suggestions aim to get more measures to solve these dilemmas and problems which China is suffering. We think, China must adapt to the supply-side reforms and develop long-term strategies of importing foreign ore to ensure long-term development of the iron ore market. In addition, these measures are also feasible, such as acquiring equity interest income in the foreign stock market, enlarging new business, building steel firms in the counties with rich ore resources and so on.