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"Steel is a key foundation industry and it is absolutely essential that it receives practical support from the government," he said.

Chinese authorities unveiled a plan to facilitate the development of the country's raw materials industry during the 14th Five-Year Plan period (2021-2025).

Chen also outlined a series of goals to achieve in terms of green transformation across raw material industries by the end of 2025.

Hydrogen is expected to play a much larger role in China's decarbonization, especially in industries like steelmaking and aviation, where there are few clean energy alternatives, analysts said.

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