According to Goldman Sachs reports, over the next 50 years, Brazil, Russia, India and China -The BRICs economy- could become a much larger force in the world economy. If things go right, in less than 40 years, the BRICs economies together could be larger than G6 in US dollar terms. By 2025 they could account for over half the size of the G6.The relative importance of the BRICs as an engine of new demand growth and spending power may shift more dramatically and quickly than expected. Higher growth in these economies could offset the impact of the growing populations and slower grower in the advanced economies.Brazil, Russia, India and China have varied economic histories and strategies for stimulating economic growth. These four countries have also tried to open their economies to global trade and investment, with varying degrees of success. These countries have quite different economic histories, but the BRICs are growing from a lower level of economic activity, since they are all developing countries, and can sustain higher growth rates more than developed countries. If these countries can work through their complex issues, they may become world economic powers.The steel industry has taken on a vital role from the raw material industry to the high-tech industry. China has been the leader of steel industry since 2001. From 2004, the annual output of steel exporting has been quickly increased in China. And until 2006, China has been the biggest exporter in the world. But China has not been a country which has great power in steel industry, and still has many weaknesses in international competitiveness.This paper tries to compare Chinese Bao steel company with Posco in their international competitiveness. Through case studies, this paper suggests how to work together in the future. To improve international competitiveness of Chinese steel industry, this paper tries to find out the problems of Chinese steel industry in interior factor, equipment and technology in China are lagged behind other nations. In external factor, production construction is irrational, higher value-added productions are undersupply, while low-lever steels are overproduction. Also there are problems in the strategy, construction and competition, such as lower industrial intensity, lack of global strategy. Through case studies, this paper suggests that strengthening technological exploitation, improving industrial intensity, M&A and integrating steel industry, rationalizing industry construction and production distribution, increasing the government supports, using internet system, accelerating the construction of expanding industry can be good ways to achieve it. Finally, in the development of steel industry, we must attach importance to environmental protection.