China to step up efforts to cut overcapacity in 2019

BEIJING -- Chinese authorities said Thursday the country will press ahead with the efforts to cut excess capacity in key areas, including coal and steel sectors, this year.

In 2019, the government will focus on structural capacity cuts and promote the systematic improvement of production capacity, according to a circular jointly released by the National Development and Reform Commission and other departments.

Since 2016, China has cut crude steel capacity by more than 150 million tonnes and cut outdated coal capacity by 810 million tonnes.

The country should consolidate the outcomes of cutting overcapacity and step up inspection to avoid the resurgence of eliminated capacity, it said.

Efforts should be intensified to optimize the structure of the steel industry and raise the quality of coal supply, the circular said.

The country will strictly control new capacity and coordinate capacity-cut targets for 2019 to ensure market stability, it added.