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Premier promises steel, coal capacity cuts

(Xinhua) Updated: 2016-06-27 15:18
Premier promises steel, coal capacity cuts

Premier Li Keqiang delivers a keynote speech at the opening of the Annual Meeting of the New Champions in Tianjin on June 27, 2016. [Feng Yongbin / chinadaily.com.cn]

TIANJIN -- China will cut excess capacity in steel and coal as part of its economic structural reform, Premier Li Keqiang vowed as he addressed the opening of the Annual Meeting of the New Champions 2016, or Summer Davos, in Tianjin on Monday.

The government will continue to focus especially on supply-side structural reform by reducing supply of inefficient and low-end products and services while encouraging more in-demand and premium ones, a process that will boost economic growth, Li told delegates at the forum.

An important part of the supply-side reform is cutting excess capacity in sectors including steel and coal, and this will be further pushed mainly "with a market-oriented and law-abiding approach," he said.

According to the premier, governments and enterprises will take measures to reemploy steel workers and coal miners made redundant.

"Overcapacity is a global challenge and China stands ready to be a responsible country with all these proactive measures," he said.

The government will reform on its own services to cut red tape and regulate emerging sectors or business models, Li said.

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