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China / State Council News

China to review capacity cut as it closes to target

(Xinhua) Updated: 2016-10-15 16:03

BEIJING -- China will arrange checks on its coal and steel overcapacity reduction efforts, which had apparently gained momentum by September, Shanghai Securities News reported Saturday.

Details on the axed capacity are being examined and will be released soon, said Zhao Chenxin, spokesperson of the National Development and Reform Commission, according to the report.

The ministerial meeting will regulate the review and train related authorities to conduct random checks on progress, he said.

In the first half of 2016, China reduced its steel capacity by 13 million tonnes, about 30 percent of the planned cuts for the whole year. By the end of July, a total of 47 percent was completed.

But China had only achieved 38 percent of its coal cutting targets by the end of July, official data showed.

The efforts have since picked up speed notably in August and September largely due to pressure from the central government, which closely tracked local implementation with inspection groups and targeted operations on outdated production capacity, Zhao stated.

"Meanwhile, local authorities are encouraged to cut much and early as the subsidies are higher this year," he said.

Cutting overcapacity is high on the central government's reform agenda as excess capacity in sectors such as steel and coal weighed on the country's overall economic performance.

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