A support package of up to £9m has been announced by the Government and Tata Steel to provide support to Scunthorpe steel workers and the local economy.
It comes after Tata Steel confirmed it will cut almost 1,200 jobs at its plants in Scunthorpe and Scotland.
The Prime Minister said that he discussed the "problem of global oversupply" of steel and President Xi Jinping and said that China has plans to reduce that supply.
David Cameron said the stronger Britain's economic trading with China becomes, the more able the UK is to have "frank and necessary discussions" on other issues.
Xi said via a translator that China has taken a series of steps to reduce capacity, saying production has decreased by 77.8 million tonnes.
The Prime Minister said Britain will take action on energy costs and procurement of UK-made steel for national projects.
His comments come after Labour leader Jeremy Corbyn accused the government of having no industrial strategy to tackle the crisis-stricken steel sector.
As the UK steel industry comes perilously close to collapse, Nina Nannar reflects on her own upbringing in the shadow of Scunthorpe's plant.
Jeremy Corbyn has accused the Government of having no industrial strategy as redundancies mount in the crisis-stricken steel sector.
Caparo Industries is set to go into administration later today, ITV News has learned.