Japan's cement industry began with official business of Meiji. Along with solving the national policy shift after "Coup in the 14th year of Meiji" and its own poor management, the cement industry started its private development process and developed rapidly under the support of sufficient industrial funds. The cement industry has experienced explosive growth after the First World War. In the mid-1920s, it ushered in excessive market competition caused by overcapacity. The pressure of market competition forced enterprises to innovate production technology and introduce scientific management models, but it also caused the situation of overinvestment and product price decline. The lower cement prices have expanded the demand for cement in upstream and downstream industries, making it a "profiteer industry", leading to more companies to participate and finally resulting in greater overcapacity. The decline in prices has also promoted the development of other industries such as infrastructure construction and electric power. Among them, the development of the electric power industry has in turn provided a new source of power beyond coal and reduced the production cost of cement. Therefore, the circular correlation effect is a significant internal mechanism that prompted modern Japan to rapidly complete heavy industrialization and promoted the development of its economic vitality in the 1930s. Under this dynamic development mechanism of "market mechanism → market competition → overcapacity → product prices decline → correlation effects promote the development of related industries → market demand expands the development of industry", Japan's industrialization process has also been able to develop at a high speed. Under this pressure, on the one hand, the establishment of the system of "chaebol" and sales organization "cartel" marks the maturity of the Japanese cement industry. On the other hand, it has also become an important factor for Japan to implement foreign dumping and snatch the Asian market.