China to toughen efforts in cutting excess capacity

China will toughen efforts to cut excess capacity and ensure annual targets are met.

China has phased out 31.7 million tonnes of steel capacity and 68.97 million tonnes of coal capacity, about 63.4 percent and 46 percent of the annual targets, according to a statement following a State Council executive meeting presided over by Premier Li Keqiang on Wednesday.

However, enthusiasm for the drive is waning with rising demand for steel and coal, difficulty in relocating former employees and digesting the debt, the statement pointed out.

Relocating laid-off employees is a priority and the government will offering them financial support to help them to get a job and guarantee basic livelihood.

Local governments should release information in good time, avoid inflating their progress and keep tight control over imports of low-quality coal, the statement added. Endi