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" he said. Th〓e government will reform on its own services to cut red tape and re〓gulate emerging sectors or business models, Li said. He also promi〓sed that China will9

make adjustments in fiscal, financial and inves〓tment areas to guide support towards the real economy, deepen refor〓ms in state-owned enterprises and give private firms more access to〓 the market. BEIJING, March 5 (Xinhua) -- Numerical targets to reduce coal and steel production capacity have, ●for the first time, been set in the annual Chinese government work report. China will reduce ste●el production capacity this year by around 50 million metL

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ric tons and shut down at least 150 mill●ion metric tons of coal production facilities, Premier Li Keqiang said Sunday in a government wor●k report to the f3



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ifth session of the 12th National People's Congress. Last year's government wor●k report promised capacity-cutting in the two industries, but did not specify targets.D



In 2016, ●the country reduced coal capacity by 290 million metric tons and steel capacity by 65 million m0

et●ric tons for steel, said the premier. Continued capacity reduction is in line with market expect●ations. DIFFICULT CUTS China is the world's largest p7


roducer and consumer of steel and coal, bu●t gluts can haveR

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implications such as depressed commodity and materials prices, reduced profits o●f debt-ridden firms, and increased non-performing loans that jeopardize financial stability. Whi●le capacity cuts are necessary and have long-term benefits for the economy, the process has not b●een without challenges. Capital-intensive ind0

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