Abstract: In the context of global carbon neutrality, the production of "green iron", centered around hydrogen-based direct reduction iron （DRI）, is regarded as a crucial path for the decarbonization of the steel industry. However, in the European Union, a pioneer in this transition, the construction of DRI projects has been widely delayed and marked by a "polarized" dilemma, while other countries have also encountered various challenges. Based on the practices of DRI projects in the EU and multiple other nations, this article conducts an analysis from the perspectives of energy structure, technological pathways, industrial ecosystems, and the systemic reshaping of global trade. It is pointed out that the delays in Europe are the result of multiple systemic barriers, including the "cost-demand" scissors gap, the lag in energy system transformation behind industrial decarbonization needs, policy tool failures, internal path dependence, and global competitive pressures. Further analysis suggests that the realization of "green iron" faces common challenges such as technological maturity, economic feasibility, the absence of standards, and supply chain restructuring. Its development is inevitably bound to undergo a prolonged transition period characterized by the co-evolution of technology, market, and policy. Based on this, a multidimensional analytical framework encompassing technology economy, industrial ecology, and geopolitical trade is constructed. The strategic framework for China's role in the global "green iron" system is explored in depth. It is pointed out that China needs to abandon fragmented investment models and implement a combined strategy of "dual circulation domestically and internationally". At the domestic level, renewable energy-rich regions should be used as bases to promote the integrated demonstration and scaling of "green power-hydrogen production-metallurgy," thereby solidifying the technological foundation. At the international level, resource and market dual layouts should be leveraged to acquire factor endowments. Ultimately, China should transform external carbon barrier pressures into internal momentum for systemic reform and industrial chain upgrading, striving to become a key contributor to global "green iron" technological innovation, a core organizer of the supply chain, and a crucial participant in rule-setting.