China's second-largest steelmaker Baosteel Group said it will be evaluated by Japanese carmaker Nissan Motor Co as a global autosheet supplier.

This is the first time a Chinese steel producer has entered the car maker's global supply evaluation mechanism.

As China's leading auto sheet producer, Baosteel said in a notice on its website that it expected to have more cooperation with Nissan through its partnership with Nissan's car venture with Hong Kong-listed Dongfeng Motor Group Co.

Beijing is encouraging top steelmakers to develop more high-end steel products to increase the market share of larger producers and filter out inefficient capacity, with Baosteel leading the way.

The group, parent of Shanghai-listed Baoshan Iron & Steel, has received regulatory approval for its Zhanjiang project, which is expected to produce high-grade steel products.