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Economics & Trade

Autos, new energy included in overcapacity cuts

More industries are likely to be included in China’s drive to cut excess capacity, which so far has focused on steel and coal, a report said Monday, as President Xi Jinping vowed to “reduce low-end and inefficient supply.” The government may broaden targeted groups to include autos, new energy and graphene – used in making of electric circuits, solar batteries and display screens – said the Economic Information Daily, citing unnamed sources. The newspaper, owned by the official Xinhua News Agency, did not elaborate. During Sunday’s meeting of the Communist Party’s Politburo, Xi called for supply-side reforms to be deepened this year, urging the structure of supplies to be improved to “better adapt to changes in demand,” Caixin reports. The government will “reduce low-end and inefficient supply” while “expanding effective and medium- and high-end supply,” Xi said.

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