With the Olympic Games coming in 2008, China government is worried about the environment problem especially the notorious air pollution issue.

Steel industry is one of the major pollutants source, and the government was trying to lobby the steel plants neaby Beijing to cut production during the game period from July to September 2008.

Therefore, Shougang steelworks who promised to almost " shut down" but only keep bare minimum need to maintain the safety of the plant and prevent damage to its blast and coke furnaces. The sacrifice is said to get some uncertain government tax compensation and the government is said to be quite " satisfied " with Shougang's cooperation.

The uncertain compensation measures is halting other steel mills for the willingness of production cut which might eventually force the government to issue formal orders.