China's steel overflow spurs critical rules

(MENAFN) In a necessary move to address overcapacity in sectors such as steel and coal, China plans to allocate a whopping USD15.25 billion every year spanning throughout the next five years.

Accordingly, steel and coal have the largest inventories in China; therefore no new projects are being given the green light, plus outdated production facilities are being shut down.

The coal industry alone will get nearly USD21.2 billion, thus 1.8 million workers in the segment will be displaced while 360 million tons of obsolete production capacity will be removed.

"The steel and coal sectors should take the lead in cutting overcapacity, reducing costs and improving efficiency, which as a result will see positive impact in the whole economy", said a top economist.