During the 2026 “Two Sessions” (National People’s Congress and Chinese People’s Political Consultative Conference), Hu Wangming, a member of the National Committee of the Chinese People’s Political Consultative Conference (CPPCC), Secretary of the Party Committee, and Chairman of China Baowu Steel Group, focused on three major: the transformation of the manufacturing workforce in the era of artificial intelligence, overseas ESG construction, and the green and low-carbon development of the steel industry. He proposed systematic solutions. As a leading enterprise in the global steel industry, China Baowu provides a practical model for industry transformation and upgrading through technological innovation and management reform.
I. AI Empowerment: Reconstructing the Manufacturing Talent Ecosystem
Against the backdrop of accelerating AI technology penetration, the traditional manufacturing industry faces the dual challenges of improving production efficiency and transforming the workforce structure. China Baowu took the lead in implementing a strategy for the deep integration of “artificial intelligence + steel manufacturing.” The “2526” Project, initiated in 2025, centers on enhancing the AI literacy of all employees, constructing an intelligent transformation framework covering all positions.
Dual Drivers: Technological Empowerment and Institutional Innovation.By building an autonomous and controllable AI application platform, China Baowu embeds intelligent algorithms into the production process, enabling functions such as predictive maintenance of equipment and dynamic optimization of process parameters. Data from pilot units shows that the intelligent system has increased the blast furnace gas utilization rate by 8% and reduced energy consumption per ton of steel by 5%. Concurrently, the company launched a Digital Intelligence Engineer certification system to cultivate composite talents proficient in both steel process knowledge and AI technology. The production efficiency of the first batch of certified personnel has increased by 30%.
Addressing Transformation Pain Points: Rights Protection and Innovation Ecosystem.However, the proliferation of AI also brings issues such as the absence of algorithmic management and inadequate protection of labor rights. Hu Wangming suggested accelerating the formulation of “Ethical Guidelines for AI Application in Manufacturing,” establishing a transparent algorithm supervision mechanism, simultaneously improving the digital skills training system for employees, and setting up a special fund to support lifelong learning. China Baowu’s practice demonstrates that constructing a dual-track model of “Employee Innovation Studios + AI Labs” can effectively stimulate grassroots innovation vitality, having incubated over 500 technological innovation projects in the past two years.
II. ESG for Overseas Expansion: Building a Green Benchmark for the “Belt and Road”
With the deepening of the “Belt and Road” Initiative, Chinese enterprises face higher expectations regarding their overseas responsibilities. Hu Wangming pointed out that current ESG practices among Chinese enterprises encounter bottlenecks such as fragmented standards and insufficient local adaptation. Taking China Baowu as an example, its Simandou iron ore project in Guinea once faced international pressure due to issues involving biodiversity protection and community relations coordination.
Constructing an ESG Standard System with Chinese Characteristics.To address these challenges, Hu Wangming put forward three suggestions: First, establish a “Belt and Road” biodiversity compensation mechanism, quantifying environmental contributions through carbon sink trading and ecological restoration funds; second, innovate an “incremental development contribution” evaluation model, incorporating indicators such as infrastructure improvement and local job creation; third, promote the establishment of a mutually recognized cross-border carbon reduction system to resolve financing difficulties for green projects in developing countries.
Green Practices of the Simandou Project.As one of the world’s largest untapped iron ore deposits, the Simandou project integrated ESG principles from its design phase. China Baowu adopted enclosed ore conveying pipelines instead of traditional road transport to reduce dust pollution; built a solar power station to meet 30% of the project’s electricity needs; and collaborated with local communities to build schools and hospitals, creating over 2,000 jobs. This model not only ensures resource supply security but also establishes an international example of responsible development.
III. Green Smelting: Seizing the High Ground of Low-Carbon Technology
The steel industry accounts for approximately 7% of global carbon emissions, making its green transformation a critical battle in industrial decarbonization. Through technological innovation and industrial chain collaboration, China Baowu has constructed a full-chain carbon reduction system encompassing “green mines – low-carbon smelting – high-end manufacturing.”
Breakthroughs in Core Technologies.In terms of process innovation, the world’s first industrial-scale oxygen blast furnace with rich-hydrogen carbon recycling (HyCROF) has achieved a 20% reduction in carbon emission intensity per ton of iron. The million-ton hydrogen-based shaft furnace project, utilizing a green power-water electrolysis-hydrogen-DRI (Direct Reduced Iron) process, is expected to reduce carbon emissions per ton of steel to below 1 ton after its planned commissioning in 2026. Furthermore, in response to the demands of the new energy vehicle industry, China Baowu built the world’s first low-carbon non-oriented silicon steel production line, with a product carbon footprint 60% lower than traditional processes.
Standard Setting and Ecosystem Building.To promote the transformation of the entire industry, China Baowu, in collaboration with the China Iron and Steel Association (CISA), established an Environmental Product Declaration (EPD) platform for the entire steel industry chain. It has cumulatively published over 12,000 data entries covering raw material procurement, production and manufacturing, and downstream applications. Based on this, Hu Wangming calls for the establishment of a National Steel Carbon Neutrality Technology Innovation Center, integrating resources from universities, research institutions, and enterprises to tackle frontier technologies like hydrogen metallurgy and smelting reduction. He also suggests upgrading the EPD platform to a national-level public service platform to enhance international discourse power.
From the green development of African mines to the intelligent transformation of urban steel plants, from single product output to empowerment across the entire industrial chain, China Baowu’s practice confirms a core logic: the future competitiveness of the steel industry depends on the deep integration of greening, intelligence, and global responsibility. As Hu Wangming stated, “We must redefine steel with technological innovation, reshape the value chain with ESG concepts, and build a solid industrial foundation for Chinese-style modernization.” With the continuous release of policy dividends and the accelerated iteration of technological innovation, a more resilient steel powerhouse is emerging.
Reprinted from steel.com
