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China Targets More Cuts in Steel, Coal Capacity

The government is cutting steel production capacity as part of a nationwide campaign to close excess and inefficient industrial capacity that had dragged down prices and corporate profitability, while exacerbating the country’s pollution problems. Photo: VCG
The government is cutting steel production capacity as part of a nationwide campaign to close excess and inefficient industrial capacity that had dragged down prices and corporate profitability, while exacerbating the country’s pollution problems. Photo: VCG

China will continue to reduce overcapacity in steel and coal production this year, Premier Li Keqiang said in his annual report to the legislature on Monday, setting targets to take out 30 million metric tons of steel and 150 million metric tons of coal capacity.

The government will also close coal-fired power plants with capacity of less than 300,000 kilowatts that fail to meet necessary standards, Li said in his work report to the National People’s Congress. Companies in the steel industry will be encouraged to upgrade their plants to reduce pollution, he said.

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