The Chinese government has an unusual problem: The country produces much more steel than it can actually use. A possible solution to the problem comports with the evolution of the Chinese economy. On May 17, the People's Daily, citing the general manager of a Chinese investment company, reported that China was preparing to relocate 10 million metric tons (mmt) of steel production capacity to Brazil, about a third of which would be run by a consortium of China's high-end steel producers. Though the words of a single investment company manager do not represent the views of the government in Beijing, that the report came in the Chinese Communist Party's official mouthpiece suggests that the country's leaders are pushing for its major steel conglomerates — some of the world's largest steelmakers — to expand and dominate the global steel industry while making incremental moves to cut capacity at home.