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China accomplishes 2015 goals for cutting excess capacity

Updated: Oct 9,2016 7:21 PM     Xinhua

BEIJING — China has accomplished its goals for cutting excess capacity in 2015, authorities announced on Oct 9.

All local governments met their annual goals to reduce excess capacity in a total of 16 sectors, including electricity, coal, steel and cement, according to a statement released by the Ministry of Industry and Information Technology and the National Energy Administration.

Last year, China reduced production by about 5.3 million kilowatts of electricity, 101 million tonnes of coal and 31 million tonnes of crude iron and steel, while the annual reduction goals were set at about 4.2 million kilowatts, 78 million tonnes and 30 million tonnes respectively.

Cutting overcapacity is high on the central government’s reform agenda as excess capacity in sectors such as steel and coal weighed on the country’s overall economic performance.

China plans to cut steel and coal capacity by about 10 percent — as much as 150 million tonnes of steel and half a billion tonnes of coal — in the next few years, with funds set aside to help displaced workers.