Country bans expansion of 'chaotic' steel sector

With China's steel industry in turmoil over the Rio Tinto scandal, the government has instituted a three-year moratorium on applications to expand production or start new projects.

China, the world's largest iron ore buyer, needs to have more say in the global iron ore trade, Industry and Information Technology Minister Li Yizhong said yesterday.

Specifically, the country is reacting to the steel industry's production overcapacity, the minister said at a press conference in Beijing.