BEIJING — China has taken solid steps to eliminate overcapacity since 2016, reducing crude steel capacity by over 150 million tons, the Ministry of Industry and Information Technology has said.

More than 140 million tons of substandard steel output has also been eliminated over the past four years, said Huang Libin, an official with the Ministry of Industry and Information Technology.

When steel prices rebounded, some mills were lured to recover the production of substandard steel products, which resulted in pollution to the environment and quality and safety hazards.

Responding to that, the government has resolutely cracked down on the production and sales of substandard steel and maintained a tight grip over steel capacity.

Over the past few years, China has moved to shift the economy from heavy reliance on exports and investment to more homegrown consumer demand, with the steel sector frequently cited as ripe for consolidation because of surplus production capacity.

This year, the government will continue to strengthen inspections over steel mills to cut outdated and substandard production capacity to boost the sector's healthy development, Huang said.