China doubled down on its commitment to reducing overcapacity in steel and coal production in 2018, Caixin Global report from Beijing, hoping to cut 30 million metric tons of steel and 150 metric tons of coal.
In his annual report given to the legislature, Li also promised to close coal-fired power plants with capacity less than 300,000 kilowatts that failed to meet certain environmental standards, and steel plants will be pressured to upgrade.
The government’s efforts to shed excess capacity started in 2016, following a sustained drag on prices, corporate profits, and environmental quality. Official data show that 115 million metric tons of steel and over 400 million metric tons of coal capacity have been cut in the past two years. The government is currently working ahead of schedule.