China to cut steel capacity by 30 mln tons, coal by 150 mln tons in 2018

China will cut ineffective steel capacity of 30 million tonnes and coal capacity of 150 million tonnes in 2018, according to a government work report.

Meanwhile, coal-fired power generating units with a capacity of less than 300,000 kilowatts that fail to meet standards will be closed this year, according to the report delivered at the first session of the 13th National People's Congress.

Cutting overcapacity in bloated sectors like steel and coal has been high on the government work agenda in recent years as gluts of production ate into corporate profit and dragged economic growth.

China slashed over 50 million tons of steel capacity and 250 million tons of coal last year, both outperforming the annual targets.

China will strengthen work on "zombie enterprise" bankruptcy liquidations and reorganization, and ensure that affected employees are given assistance and debts are dealt with, the report said.

Measures such as reorganization among industrial players helped steel and coal sectors gain strength last year, with impressive improvements in factory price and corporate profit.

The country will also act faster to reduce excess food stockpiles, the report added.