China’s efforts to reduce overcapacity in the coal and steel sectors have recorded a slow start, casting doubts on whether the government can honor its pledge to trim down the two huge industries. China’s over production and export of steel has become a source of friction with the United States and European Union, with allegations that it is dumping cheap, subsidized steel on overseas markets, harming local manufacturers. Beijing has set a target of cutting excess capacity in steel by 45 million tonnes and by 250 million tonnes in coal by the end of November. By the end of July, however, only 47% of the capacity reduction target in the steel industry and 38% in coal were achieved, the South China Morning Post reports.
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