Downsizing will mean thousands are retrained

The Chinese government is strategically managing the reduction of the nation's overcapacity of coal, steel and oil in provinces, including Shanxi, Hebei and Shaanxi, and striving to deal with redundant employees in a sustainable way.

The downsizing in the industries became necessary after sales prices fell dramatically, starting in 2012, and the sectors became plagued by overcapacity.

As a result, the nation plans to cut between 100 million metric tons and 150 million tons of steel capacity and 500 million tons of coal capacity in the coming five years. The slashed production will mean 500,000 employees in steel companies and 1.3 million employees in the coal sector will lose their jobs, according to the Ministry of Human Resources and Social Security.