Abstract: In this paper, a game theoretical approach is employed to strategic interactions between Chinese steel enterprise and JapanSteel enterprise. The research shows he two Steel enterprises come to the field of iron ore resources in the game as "Prisoner’s Dilemma" game. And under a condition of complete information, the different strategic approaches are given to deal with the different circumstances in this game. Finally, this paper propose that Chinese steel enterprises should be intensified to achieve the supply diversification strategy of iron ore sources; strengthen the building of information resources; increase related to the industrial chain-linked, and fully use their dominant resource; increased iron recycling capacity and reduce the demand for iron ore resources.