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China unveils detailed plan to cut overcapacity in steel, coal

Xinhua | Updated: 2017-05-13 10:13

China unveils detailed plan to cut overcapacity in steel, coal

A worker at a steel company in Lianyungang, Jiangsu province, in Jan 2015.[Photo/China Daily]

BEIJING - China will phase out about 50 million tons of crude steel capacity and over 150 million tons of coal capacity this year, the country's top economic planner announced Friday.

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 Wednesday, 31.7 million tons of steel and iron capacity and 69 million tons 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.

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