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Business / Hangzhou G20

Vice finance minister calls for G20 cooperation to fight overcapacity

By Wang Yanfei (chinadaily.com.cn) Updated: 2016-09-02 20:54

China's vice finance minister urged for greater collaboration to tackle challenges that arise from excessive capacity on Friday.

Speaking at the press conference held ahead of the G20 Summit to be held in Hangzhou, East China's Zhejiang province, Zhu Guangyao, vice finance minister, stressed the importance of cooperating to address challenges that cannot be resolved by any country alone.

"Excessive capacity has become a key challenge faced by both advanced and developing economies among G20 members," he said, adding that sluggish demand is one major reason leading to overcapacity.

Zhu said that global coordination is the answer to face these challenges, and that criticism does no good to resolve frictions and challenges between trading partners.

Despite facing economic headwinds and price fluctuations, "China takes the lead among major economies in the world to shut excessive capacity, " said Zhu, referring to the nation's targets set for capacity reduction and the central government's financial support for relocating laid-off workers.

Zhu added the government would help promote merger and liquidation of companies grappling with overcapacity problems using market principles.

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