China Behind on Plans to Trim Overcapacity

(Beijing) - The country's top economic planner said it was tightening oversight after Chinese provinces were found to be slow at cutting overcapacity in coal and steel, signaling severe bloodletting during the rest of the year.

Coal mine closures over the first seven months only met 38 percent of the annual target to slash 250 million tons of production capacity, while layoffs in the steel sector reduced production by 47 percent of the annual target, by the end of July, said Zhao Chenxin, spokesperson for the National Development and Reform Commission (NDRC), on August 16.