Cabinet: China to scale back steel, cement overcapacity

China’s cabinet said it will make efforts to curb overcapacity and investment in the steel and cement industries, among others that may be overheating due to China’s stimulus plan, AP reported, citing state media. Industry regulators will “enhance management” of other industries including flat glass, wind power, polysilicon production and chemicals, the Xinhua New Agency reported, following a cabinet meeting led by Premier Wen Jiabao. The cabinet also said it would take measures to strictly enforce both environmental standards and market access. China’s US$586 billion economic stimulus package has led steel and cement manufacturers to step up production for public works projects, leading some economists and business leaders to warn of excess capacity across industries.