Two Chinese steel groups have taken the first step in a long-awaited takeover to create the world’s second-largest steelmaker — a move that Beijing hopes will spark a wave of consolidation¹ and improve efficiency in the bloated industry.

两家中国钢铁集团向着各方期待已久的合并迈出第一步，将缔造全球第二大钢铁制造商，中国政府希望此举将引发并购浪潮，并提高这个臃肿行业的效率。

However, analysts³ said that the deal between Baoshan Iron and Steel and Wuhan Iron & Steel is only part of what is likely to be a long and complex process to consolidate⁴ China’s fragmented steel industry.

然而，分析师表示，宝钢股份(Baoshan Iron and Steel)和武钢股份(Wuhan Iron & Steel)之间的协议只是整合中国分散的钢铁行业过程的一部分，这个过程很可能是漫长且复杂的。

On Tuesday Baoshan, the listed arm of China’s second-largest steel producer Baosteel Group, said it would issue new shares in order to absorb the listed arm of Wuhan Iron & Steel Group, China’s fifth-largest steel producer by volume.

周二，中国第二大钢铁制造商宝钢集团(Baosteel Group)的上市子公司宝钢股份表示，将发行新股，以吸收合并中国第五大钢铁制造商（按产量计算）武汉钢铁集团(Wuhan Iron & Steel Group)的上市子公司。

The subsuming of Wisco’s traded entity⁵ by Baosteel’s listed unit is a preliminary step in the merging⁶ of the two parent groups, and is subject to Chinese regulatory approval, according to a filings by both companies.

根据两家公司递交的监管申报文件，宝钢上市子公司吸收合并武钢上市公司是两家母公司合并的预备步骤，并将有待中国监管部门审批。

The merger⁷ does not mean success of this “test case”, according to Xu Zhongbo, an analyst² at Beijing Metal Consulting. “The most important thing is that steel production comes together quickly,” he said.

北京梅塔科咨询公司(Beijing Metal Consulting)分析师许中波表示，此次合并不仅意味着这一“测试案例”的成功。他表示：“最重要的是钢铁生产迅速合并。”

He added: “In the two groups there are many small companies and it will take a long time to decide which businesses will be sold or closed — this could be a costly⁸ process.”

他补充称：“这两个集团有很多小企业，需要很长时间才能确定哪些企业将被出售或关闭，这可能是一个代价高昂的过程。”

The creation of Baowu Steel Group — as China’s press has dubbed⁹ the merged¹⁰ entity — is considered the starting point for Beijing’s plans to improve Chinese efficiency by pushing zombie companies out of operation.

宝武钢铁集团（这是中国媒体给合并后实体起的名字）的缔造被视为北京方面计划的起点，目的是促使僵尸企业破产，提高中国工业效率。

China’s steel’s overcapacity helped plunge¹¹ the global industry into crisis last year, when surging cheap Chinese exports dragged down global prices.

中国钢铁业的产能过剩导致全球钢铁行业去年陷入危机，当时不断激增的中国廉价钢铁出口拖低了全球价格。