Youfa Group has served as the inaugural chair unit of the Steel Pipe Branch of the China Iron and Steel Association, breaking the deadlock of “involution” through competitive cooperation and supporting the successful convening of the 20th Steel Distribution Promotion Conference.

On June 16, the inaugural general meeting of the China Iron and Steel Association’s Distribution Branch and Welded Pipe Branch, themed “Growing Toward the Sun, Embarking on a New Journey,” along with the 20th Steel Distribution Promotion Conference, was held in Beijing. The event was hosted by the China Iron and Steel Association and co-organized by its Distribution Branch and Welded Pipe Branch. Youfa Group served as a supporting partner, helping ensure the conference’s successful convening and smooth conclusion. Earlier, at the first session of the inaugural members’ meeting of the China Iron and Steel Association’s Welded Pipe Branch held on June 15, Li Maojin, Chairman of Youfa Group, was elected as the branch’s inaugural president.

Conference Venue

Jiang Wei, Deputy Secretary of the Party Committee (in charge of daily operations), Vice President and Secretary-General of the China Iron and Steel Association; Ren Xingzhou, former Director of the Institute for Market Economy at the Development Research Center of the State Council; Song Zhiping, President of the China Listed Companies Association; Chen Leiming, President of the Distribution Branch of the China Iron and Steel Association; Li Maojin, President of the Welded Pipe Branch of the China Iron and Steel Association and Chairman of Tianjin Youfa Group; as well as Su Changyong, Deputy Secretary-General of the China Iron and Steel Association; Feng Chao, Deputy Secretary-General and Director of the Science, Technology and Environmental Protection Department; and Liu Biao, Deputy Director of the Market Research Department, attended the meeting. Also in attendance were vice presidents and directors of the Distribution and Welded Pipe Branches of the China Iron and Steel Association, representatives from member units, and presidents and secretaries-general of chambers of commerce from more than 30 provinces and municipalities across the country. Li Jing, Secretary-General of the Welded Pipe Branch, and Zhang Yanju, Secretary-General of the Distribution Branch, chaired the morning and afternoon sessions, respectively.

Jiang Wei delivered the opening address at the conference. He stated that the establishment of the Steel Distribution Branch and the Welded Pipe Branch by the China Iron and Steel Association represents a concrete step in implementing the national reform of industry associations, as well as an important strategic move to further refine the service chain and foster coordinated development across the entire industrial value chain. Both branches should anchor themselves in their roles as bridges and conduits, fully leveraging their proximity to the market and enterprises to facilitate efficient linkages among production, distribution, processing, and end-use, and guide companies in transitioning from mere product sales toward the provision of services and comprehensive solutions. They must also strengthen their sense of collaborative action, explore new models of R&D cooperation based on win‑win partnerships and shared benefits, and enhance the international competitiveness of China’s steel distribution services and welded pipe products. In addition, the two branches should consolidate their institutional foundations and set new benchmarks for improving their service capabilities.

Deputy Secretary of the Party Committee of the China Iron and Steel Association (in charge of daily operations)

Vice President and Secretary-General Jiang Wei

In the keynote report titled “Analysis of Development Trends in China’s Steel Industry during the 15th Five-Year Plan Period,” Jiang Wei stated that the steel industry has now entered a phase of decarbonization and output reduction, an inevitable outcome dictated by the laws of economic development. Although the 14th Five-Year Plan period saw a sharper decline in steel demand and mounting overcapacity pressures, the industry’s total profits nonetheless achieved a substantial leap, successfully meeting the dual objectives of reduced output and improved profitability against the trend. “This was made possible by unified industry-wide thinking and comprehensive self-regulation and control,” Jiang Wei noted. During the 14th Five-Year Plan, the steel sector steadfastly adhered to the “Three Determinations and Three No’s” management principles, maintaining disciplined production controls, reducing inventory levels, and rigorously managing accounts receivable, thereby significantly enhancing operational efficiency and quality. Data show that by 2025, steel price volatility had fallen to its lowest level in recent years, and the share of accounts receivable in total revenue remained well below the national industrial average.

Jiang Wei also stated that to fundamentally address industry-wide involution and resolve supply‑demand imbalances, it is essential to deepen capacity management on the supply side. On the one hand, accelerating corporate mergers and reorganizations and optimizing existing production capacity will help tackle overcapacity at its source. On the other hand, aligning with the development trajectory of the 15th Five-Year Plan, companies should clearly define their transformation path and, through three major initiatives—quality‑driven product innovation, carbon‑efficiency upgrades, and digital transformation—move away from homogeneous, low‑price, and destructive competition. Enterprises should focus on new infrastructure and high‑end steel markets for manufacturing, optimize their product mix, develop low‑carbon steels and advanced specialty steel products, and deepen their presence in regional markets and niche, specialized, and innovative segments. At the same time, they should advance digital transformation to boost productivity, build out carbon‑asset management capabilities, and strictly control the outflow of low‑end steel grades. By combining long‑term self‑discipline with industrial upgrading, they can navigate the industry’s phase of reduced output in a stable and sustainable manner.

Former Director of the Institute for Market Economy, Development Research Center of the State Council Ren Xingzhou delivered a keynote report titled “Consolidating the Foundations and Mobilizing All Forces: Prospects for the Economic Development Environment and Macroeconomic Policies during the 15th Five-Year Plan Period,” offering a clear, macro‑level analysis of the major economic trends and policy directions expected over that timeframe.

In his keynote address titled “The New Blue‑Ocean Strategy: How to Break Free from the Vicious Cycle of Involution,” Song Zhiping, President of the China Association of Public Companies, stated that involution is, at its core, an inefficient and irrational form of competition that yields “growth” devoid of genuine development—clearly at odds with the goal of high‑quality development. He argued that the steel industry’s “Three Definites and Three No’s” strategy holds significant practical value in combating involution, boasts strong industry recognition, and simultaneously addresses three major challenges—shaping industry-wide perceptions, ensuring effective policy implementation, and improving on‑the‑ground business operations—thereby effectively preventing enterprises from suffering operational attrition.

Song Zhiping argues that severe overcapacity is the root cause of the steel industry’s internal competition. To break free from this vicious cycle, the industry must continue to implement measures such as reducing excess capacity, encouraging corporate mergers and reorganizations, and curbing unfair price competition. It should also leverage the coordinating role of industry associations to hold large enterprises accountable for leading by example in self‑discipline. Companies, for their part, must abandon homogeneous, low‑price, cutthroat competition, prioritize quality improvement and product innovation, and pursue a development path characterized by differentiation, market segmentation, high‑end positioning, and brand building. They should shift away from cost‑based pricing, establish a scientifically sound pricing framework, focus on high‑value‑added specialty steels, and, through product upgrades and brand building, tap into new growth opportunities in untapped market segments.

At the meeting, the inaugural ceremonies were held to establish the China Iron and Steel Association’s Circulation Branch and Welded Pipe Branch, and plaques were presented to the presidents, vice-presidents, and secretaries-general of both branches. Chen Leiming and Li Maojin each unveiled advisory plaques for the law firms they had appointed as their branches’ long-term legal advisors.

The Welded Pipe Branch of the China Iron and Steel Association was established through the integration of the former Welded Pipe Branch of the China Metal Materials Circulation Association into the China Iron and Steel Association, in response to the industry association’s needs for reform and development. Building on its existing membership—comprising welded pipe manufacturers and equipment suppliers—the newly formed branch has expanded to include leading enterprises across key steel pipe categories, such as oil‑and‑gas welded pipes, stainless steel welded pipes, galvanized strip welded pipes, and spiral welded pipes, as well as relevant research institutes and supporting service providers. This expansion has further enhanced the branch’s industry coverage, influence, and professional expertise. Li Maojin, the inaugural president of both the old and new Welded Pipe Branches, stated that the formal establishment of the Steel Association’s Welded Pipe Branch represents a landmark event in the history of China’s welded steel pipe industry. In line with the mission and responsibilities of an industry association, the branch will uphold the guiding principle of “serving members, revitalizing the industry, and contributing to the nation.” Leveraging the Steel Association’s broad and highly professional platform, it will take proactive steps in areas such as technological innovation, industry self‑regulation, standards development, green and low‑carbon initiatives, and the effective implementation of measures to curb “involution.” The branch will continue to lead efforts to certify compliant enterprises under GB/T 3091, “Welded Steel Pipes for Low‑Pressure Fluid Transport,” and to conduct quality‑supervision inspections. It will also further publicize and promote the dynamic adjustment mechanism for the “whitelist” of compliant enterprises, thereby vigorously advancing the upgrading and high‑quality development of China’s welded pipe industry.

As a key supporting organization for this conference, Li Maojin, the inaugural president of the Steel Association’s Welded Pipe Branch and Chairman of Youfa Group, was invited to attend and delivered a keynote address titled “Countering In‑Volution and Promoting Competition‑Cooperation to Achieve High‑Quality Industry Development,” outlining a new cycle for breaking the impasse in the industry. Drawing on “Youfa’s Practices,” he offered fresh pathways and directions for preventing and countering in‑volution across the sector.

Li Maojin, Chairman of Youfa Group

In his view, the steel industry—including the steel pipe sector—has entered an era of stock‑based competition, with industry consolidation accelerating. While the traditional “involutionary” race to the bottom—characterized by cutthroat price wars—may temporarily undermine rivals, it ultimately amounts to wasteful internal friction and a pursuit of short‑term gains, easily leading to the phenomenon where inferior products drive out superior ones and stifling innovation and long‑term development. For the industry to embark on a path of high‑quality growth, reversing this trend of involution is imperative.

He also emphasized that countering involution does not mean shirking competition; rather, it entails rejecting destructive internal friction and embracing the principle of “cooperation within competition, and win‑win outcomes through collaboration,” leveraging innovation, collaborative partnerships, and industrial upgrading to achieve high‑level development driven by value creation. As for how to use coopetition to help industries break free from the trap of involution, he outlined two distinct pathways for advancement.

First, the deep equity‑integration model fosters cross‑regional brand synergy, pooling strengths and leveraging complementary advantages. Under this approach, equity‑based partnerships such as joint ventures and controlling stakes enable the cross‑regional consolidation of resources, mutual reinforcement of competitive edges, and the avoidance of ineffective competition across geographies, thereby expanding high‑end business lines and market reach. In this regard, Youfa Group, a pioneer and advocate of the co‑opetition model in the steel pipe industry, has set a notable example by forming a joint venture with Yunnan Tonghai Fangyuan—Yunnan Youfa Fangyuan—to address long‑distance inefficiencies in competition, and by acquiring a controlling stake in Cangzhou Longtai Di to develop higher‑value‑added products.

Second, the full‑market coordination model. By implementing staggered production schedules across regions, differentiated division of labor by product category, and a balanced market structure, this approach safeguards a healthy business environment. At Youfa Group, we believe that competition among peers does not have to be a zero‑sum game; rather, win‑win collaboration is the only sustainable path forward.

He concluded by calling on all stakeholders in the industry, as members of the same value chain, to embrace the spirit of “one family, one heart, working together,” jointly safeguarding market order and fostering a favorable environment that counters involution and promotes both competition and collaboration. At the same time, he urged collective efforts to advance standardization, uphold quality benchmarks, operate in full compliance with laws and regulations, strengthen technological exchange and drive innovation across the sector, and collaboratively open up dual‑circulation pathways—both domestic and international—thereby propelling the industry toward green and intelligent development and writing a new chapter of high‑quality growth. His resolute remarks resonated deeply with the audience, eliciting repeated bursts of enthusiastic applause.

Looking ahead, Youfa Group will remain committed to its goal of becoming the world’s leading player in the pipe industry, focusing on the high-end specialty‑pipe segment. The company will steadily advance the optimization and innovation of its competitive‑cooperative model, leveraging its role as an industry leader to guide the sector’s transition from price‑driven competition toward multi‑dimensional collaboration—centered on technology, branding, services, and quality. By doing so, Youfa aims to reshape the industry’s ecosystem into one of shared value and mutual success, propelling the steel pipe sector to new heights of high‑quality development.