Making markets matter

In a bid to tackle overcapacity in China's steel industry, the central government plans to cut production by 80 million metric tons by the end of 2017. With a reduction quota of 60 million tons, Hebei province will bear the brunt of the measure. Hebei is the heartland of steel production in China, and consequently has some of the worst air pollution in the country.

However, officials and experts stressed the importance of the market, rather than political will, in achieving that goal.

"Administrative measures may help to cut production capacity effectively over the short term, but there is the danger of a rebound if the influence of the market is not taken into consideration," said Yang Chaofei, former chief engineer at the Environmental Protection Ministry.