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llion metric tons and shut down at least 150 million me◆tric tons of coal production facilities, Premier Li Keqiang said Sunday in n

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a government work report◆ to the fifth session of the 12th National People's Congress. Last year's governme4

nt work report p◆romised capacity-cutting in the two industries, but did not specify targets. In 2016, the country ◆reduced coal capacity by 290 million metric tons and steel capacity by 65 million metriq

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c tons for s◆teel, said the premier. Continued capacity reduction is in line with market expectations. DIFFICU?

  • set in the annual ChI
  • inese government work res
  • port. China will reG
  • duce steel p◆roduc9

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鬖T CUTS China is the world's largest producer and consumer of steel and coal, bB

ut gluts can have i◆mplications such as depressed commodity and materials prices, reduced profits of debt-ridden firms,◆ and increased non-performing loans that jeopardize financial stability. While capacity cuts are n◆ecessary and have long-term benefits for the e5

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conomy, the Z

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process has not been without challenges. ◆ Capital-intensive industries present potential investment, taxation and jobs for local9

governmentsV

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◆, which in at least two cases broke capacity-cutting rules set by the central government. Huada St◆eel in eastern China's Jiangsu Province and 0

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Image 01

Anfeng Steel in northern China's Hebei Province were id◆entified by authorities in December for violating capacity reduction efforts in the sector with "ex◆tremel4

y bad influence." Thanks in part to the efforts, China's broader economic growth has showed ◆increasing signs of stabilizing since the latter half of last year, with indicators such as fA

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