Mumbai: ArcelorMittal is facing roadblocks in its bid to expand business in China even as demand from emerging markets continues to drive growth of steel companies around the world, Lakshmi Mittal, chairman and chief executive of the world's top steelmaker, said.

Mittal highlighted the problems of doing business in China, saying that his company had to pull back its acquisition of China Oriental last year to a 47 per cent stake amidst Chinese government restriction of ownership in steel assets.

''I wish China would let us do more. We tried to expand by acquiring more in China, but so far have not been lucky enough,'' Mittal said on the sidelines of the Forbes conference of CEOs in Singapore.

He said other steel companies also had to face similar problems in China. Russia's Evraz Group, which bought into Delong Holdings, a Singapore-listed Chinese steelmaker, could not clinch the $1.5 billion acquisition because of the Chinese restrictions, he added.

"The Chinese government is not encouraging foreign investors to come in a big way. Now their priority is consolidating their own fragmented steel industry," said Mittal, adding that he expects more consolidation among Chinese steelmakers.

Mittal said he expects the steel industry to grow at an annual rate of 3 to 5 per cent, thanks to demand from markets such as Brazil, India, Eastern Europe, and China.

Mittal said he expects prices to remain stable in the fourth quarter despite a slowdown in demand in the West.

As far as India is concerned, Mittal said, the government's inability to move quickly has created a disadvantage for his company, even though he sees potential for growth in the future.

''The existing political system cannot move faster. It's actually the biggest disadvantage working in India, that things are slow and the government has not been prepared to carry out actively infrastructure development," he said.

ArcelorMittal currently produces 45 per cent of its own iron ore, and is targeting to raise self-sufficiency to 75 per cent in five years, Mittal said.

The company also wants to boost its own coal supply up to 60 per cent over the same period, up from 50 per cent currently.

Mittal, however, voiced opposition to the potential merger of BHP Billiton and Rio Tinto. ''The steel industry has to understand the implications of such a merger. And the steel industry believes at this time that this merger is not in the interest of the industry," he said.