Cutting overcapacity still a challenge

Over the past more than one year, reducing overcapacity has been one of the five main tasks of supply-side structural reform for both the central and local governments. And according to Xu Shaoshi, head of the National Development and Reform Commission, the goal of eliminating 250 million tons of coal overcapacity in 2016 has been "over-fulfilled".

Incomplete statistics show that in 2016, central State-owned enterprises reduced 10.19 million tons of iron and steel overcapacity and 34.97 million tons of coal overcapacity. Plus, the task of doing away with 398 "zombie enterprises" and those enterprises facing extreme difficulties has been completed.

Compared with other tasks of supply-side structural reform, reducing overcapacity is easier to achieve, because it is related mainly to the relevant enterprises, and the government only needs to provide the necessary guidance.