In 2024, China faced a scenario where its crude steel production exceeded 1 billion tonnes, while consumption dropped to 892 million tonnes, resulting in overcapacity and high carbon intensity due to coal-reliant steelmaking processes. The industry faced challenges at the corporate level, including pressure on profit margins from factors like green steel premiums and international tariffs, hindering low-carbon investments and the industry's transition to a low-carbon future. To address these issues, the Chinese government introduced policies to strengthen carbon emission control, focusing on emission intensity and total emissions. The government also highlighted the importance of steel production control, capacity reduction, and hydrogen metallurgy in the 2025 economic and social development plan. China's commitment to green steel production involves using hydrogen instead of carbon as a reduction agent, with detailed plans for steel decarbonisation. The country aims to leverage green hydrogen and renewable energy to lead in green steel production globally. The shift towards low-carbon steel production involves utilizing electricity-based methods, green hydrogen, and renewable resources like scrap steel to move away from coal reliance and achieve a fully low-carbon process.