Lian Weiliang, deputy director at China’s National Development and Reform Commission (NDRC), has stated at a policy briefing held by the State Council that China has decided to conduct a special inspection to resolve overcapacity in the domestic steel and coal sectors.
Mr. Lian said that local governments and enterprises have conscientiously implemented the decisions regarding elimination of capacity and have achieved remarkable results. He stated that, as of the end of July this year, China has cut 21.26 million mt of steel capacity and over 95 million mt of coal capacity, equivalent to 47 percent and 38 percent of the annual targets, respectively. However, the progress regarding capacity cuts is uneven in the different regions, with some regions eliminating excess and outdated capacity at a slower pace. “Thus China has decided to organize 10 inspection teams to conduct a special inspection as of August 22 to encourage local governments and enterprises to take effective measures and ensure the completion of annual targets by the end of the year,” Mr. Lian said.