China unveils detailed plan to cut overcapacity in steel, coal

2017-05-13
Xinhua

BEIJING — China will phase out about 50 million tonnes of crude steel capacity and over 150 million tonnes of coal capacity this year, the country’s top economic planner announced on May 12.

By the end of June, all facilities producing inferior-quality steel bars will be dismantled and supply of steel will be increased to avoid wild fluctuations of steel price, according to the implementation plan for cutting excess capacity in steel and coal sectors released by the National Development and Reform Commission and other departments.

As of May 10, 31.7 million tonnes of steel and iron capacity and 69 million tonnes of coal capacity have been cut, accounting for 63.4 percent and 46 percent of the annual goals.

The government will take more steps to help laid-off workers find work and encourage industrial mergers and reorganization, according to the plan.

The overcapacity cuts will target debt-laden “zombie enterprises” and adopt more methods based on market rules.