The slowdown of real estate investment not only has hit growth directly but also dragged down the economy via its impact on manufacturing investment. The government has mistakenly targeted real estate development as the pillar of the economy since early 2000s. A very large proportion of economic activities are subject to the need of real estate development. The steel industry is a case in point. China has built thousands of steel mills with production capacity of 1 billion tons, which accounts for half of the global total. With the slowing down of real estate development, the bulk of steel mills immediately went under. In 2013, profit of two-ton steel was just enough to buy a lollypop. In 2014, the situation will not change much. The same is true of many other industries in the manufacturing sector.