1. There are problems of environmental pollution and ecological destruction in the production process of Baotou Steel. Bankruptcy is beneficial for local governments and enterprises to strengthen environmental protection and ecological restoration and improve regional environmental quality.
2. Baotou Steel is one of the important iron and steel enterprises in China. The bankruptcy of Baotou Steel intensified the competition in the iron and steel industry, and also prompted other iron and steel enterprises to speed up technological upgrading and product innovation and improve their competitiveness.