Since 2016, in accordance with the decisions and deployments of the CPC Central Committee and the State Council on deepening the supply-side structural reform of the steel industry, all relevant parties have continuously promoted the reduction of steel production capacity, and the industry's operation and structural adjustment have shown a positive trend, achieving significant results. However, some deep-seated contradictions within the industry have not been fundamentally resolved, and with the improvement of the steel industry's profitability, some local governments and enterprises have an impulse to blindly construct steel projects, posing new challenges to consolidating the achievements of capacity reduction. To deepen the supply-side structural reform of the steel industry, consolidate and enhance the achievements of steel production capacity reduction, and promote the transformation and upgrading of my country's steel industry, the National Development and Reform Commission and the Ministry of Industry and Information Technology will organize a nationwide "look back" inspection of steel production capacity reduction and crude steel output reduction work in 2021, guiding steel enterprises to abandon the extensive development model of pursuing quantity over quality and promoting high-quality development of the steel industry.

The "look back" inspection of steel production capacity reduction will focus on the implementation and rectification of steel production capacity reduction work in relevant regions since 2016. This includes: 1) the shutdown and withdrawal of smelting equipment related to resolving excess steel production capacity and cracking down on "inferior steel"; and 2) the construction, commissioning, and operation of steel smelting projects. The review will cover six key areas: 1) the rectification and implementation of problems identified in previous inspections; 2) the verification and rectification of reported leads; 3) the work of the Leading Group for Resolving Excess Steel Production Capacity; and 4) the progress of the 2021 crude steel production reduction work.

This "look back" inspection will be conducted in three phases. The first phase will be a self-inspection and rectification phase. Each province (autonomous region, municipality) will organize and complete its own "look back" inspection. Relevant member units of the inter-ministerial joint conference will promptly organize on-site guidance. The second phase will be on-site inspection. After the self-inspection and rectification work is completed, several on-site inspection teams composed of relevant member units of the inter-ministerial joint conference will conduct on-site inspections. The third phase will be a summary and reporting phase. Based on the self-inspection and rectification and on-site inspection results of each relevant region, a summary report will be prepared and submitted.

This "look back" inspection will be conducted in three phases. The 2021 crude steel production reduction work will be carried out on the basis of consolidating and improving the results of steel capacity reduction, taking into account factors such as doing a good job in "six stabilities" and implementing "six guarantees", meeting the long-term goal of carbon peaking and carbon neutrality, and ensuring the stable operation of the steel industry. While maintaining the continuity and stability of the supply-side structural reform policy in the steel industry, the work will adhere to the principles of marketization and rule of law, differentiate between situations, provide classified guidance, and focus on reducing the crude steel production of enterprises with poor environmental performance, high energy consumption, and relatively backward technology and equipment, avoiding a "one-size-fits-all" approach, and ensuring that the national crude steel production in 2021 decreases year-on-year.