China renews market mechanism on bloated industries

China will seek to control capacity glut in such industries as steel and cement by freezing new projects and retooling market strategies, Reuters reported, citing a new plan issued by the State Council on Tuesday. Margins in the targeted sectors, which also include shipbuilding, aluminum and glassmaking, have been affected for years by overcapacity that has left many firms suffering heavy losses and reliant on government subsidy. The long-awaited plan said it would focus on “establishing and perfecting” market mechanisms, marking a change of approach after years spent trying to strong-arm the sectors into submission.