Abstract: The implementation of “One Belt, One Road” strategy will greatly promote the development of regional economic integration. Taking iron and steel industry whose overcapacity is prominent and which is important to the development of national economy as an example, this paper finds that China’s export to “One Road” countries is significantly higher than that of “One Belt” countries. “One Road” countries and the developing countries along the “One Belt” should be mainly potential export market in the future. From the supply perspective of international transfer of overcapacity, this paper also explores the opportunity for investment cooperation for the specific surplus products in iron and steel industry with countries along the “One Belt, One Road” by application of the institutional environmental quality index such as the economic development indicator, global governance indicator and economic freedom index. Taking consideration of country strategy for economic development, industrial complementarities and political relations with China, this paper finds that the developing countries along the “One Belt, One Road” have more investment opportunities, but the potential risk shall be controlled. Analyzing the requirement of “One Belt, One Road” strategy on the one hand and the basis for trade and investment opportunity on the other, this paper proposes to resolve overcapacity in iron and steel industry by building infrastructure construction, trade and investment platform, enhancing mutual trust and avoiding risks.

Key words: strategy of &ldquo, One Belt, One Road&rdquo, , resolving overcapacity, basis for trade, investment opportunity, iron and steel industry