The National Development and Reform Commission, together with relevant departments, convened a national videoconference to accelerate the reduction of excess capacity in the steel and coal industries.

To implement the CPC Central Committee and the State Council’s directives on advancing supply-side structural reform and resolving excess capacity in the steel and coal sectors, and to mobilize local governments and central enterprises to further raise their awareness and take swift action to ensure the successful completion of this year’s targets for reducing overcapacity in these industries, the Inter-Ministerial Joint Conference on Resolving Excess Capacity and Promoting the Recovery of the Steel and Coal Sectors convened a national videoconference on July 7.

The meeting conveyed and studied the recent important instructions and directives issued by leading officials of the CPC Central Committee and the State Council on advancing supply-side structural reform and effectively reducing excess capacity in the steel and coal industries, as well as the spirit of the State Council’s special meeting held on June 21. During the meeting, Comrade Xu Shaoshi, Convenor of the Inter-Ministerial Joint Conference and Director of the National Development and Reform Commission, provided an in-depth analysis of the current situation facing the efforts to cut overcapacity in the steel and coal sectors and laid out a comprehensive plan for key tasks in the next phase. The four co-convening agencies—the Ministry of Industry and Information Technology, the Ministry of Finance, the Ministry of Human Resources and Social Security, and the State-owned Assets Supervision and Administration Commission—each put forward specific requirements for work within their respective systems. Meanwhile, the governments of Hebei Province and Chongqing City delivered model remarks on effectively implementing measures to reduce excess capacity.

The meeting concluded that, in the first half of this year, local authorities, relevant departments, and enterprises, in accordance with the directives of the CPC Central Committee and the State Council, acted swiftly and coordinated closely, achieving significant progress in capacity‑reduction efforts. The steel and coal industries have shown steady improvement, and consensus across all sectors on capacity reduction has further strengthened. However, completing the year’s targets will still require overcoming numerous difficulties and challenges, demanding substantial effort.

The meeting emphasized that all localities and relevant central enterprises must resolutely implement the arrangements and requirements of the State Council’s special meeting, accelerate the advancement of all tasks, and ensure the successful completion of this year’s goals and objectives. The next steps will focus on nine key areas: First, ensure accountability is effectively put into practice. Local governments must break down responsibilities for capacity‑reduction efforts at every level, assigning specific tasks to individual enterprises, projects, and responsible individuals, so that each task and every milestone has a designated person in charge and an oversight mechanism. By year‑end, a comprehensive review of progress across regions will be conducted, with accountability measures applied to any areas where targets remain unmet. Second, promptly refine and organize implementation plans. By July 15, all localities shall disaggregate their targets and tasks down to the city, county, and enterprise levels. On this basis, the 2016 reduction quotas must be allocated to each production line and mine, with specific completion timelines established, and reported to the Inter‑Ministerial Joint Conference Office by the end of July as a basis for follow‑up and inspection. Third, prioritize key tasks. Fully leverage the leading roles of relevant authorities and the coordinating functions of joint working mechanisms, focusing on employee resettlement, financing, and debt resolution. At the same time, actively develop the new economy and cultivate new drivers of growth to provide robust support for capacity‑reduction efforts. Implementation must be underpinned by concrete risk‑prevention and control plans, ensuring timely identification and effective management of potential risks to safeguard social harmony and stability. Fourth, emphasize market‑based and rule‑of‑law approaches to addressing excess capacity. Employ a comprehensive set of measures—including safety, environmental protection, quality standards, energy consumption regulations, and industrial policies—while enforcing stringent standards and oversight, and carrying out the “Three Special Campaigns” in depth. For steel and coal enterprises that no longer meet the conditions for survival and development, achieve market‑driven exit. Strive to balance resolving excess capacity with developing advanced capacity, avoiding one‑size‑fits‑all solutions. Fifth, strictly control the addition of new capacity and resolutely prevent the simultaneous reduction and expansion of capacity. All localities must rigorously enforce the State Council’s directives: no new steel projects may be filed under any pretext or form; in principle, approval of new coal mines, technological upgrade projects adding capacity, and capacity‑expansion projects should be suspended for three years. Continue to implement measures to reduce coal production, strictly adhere to re‑determined capacity levels, and ensure adequate electricity‑coal supplies during peak summer demand. Sixth, accelerate industrial transformation and upgrading. Focusing on enhancing the overall quality and core competitiveness of the steel and coal sectors, further strengthen support for market‑oriented mergers and reorganizations, encourage leading enterprises to pursue such initiatives, and help flagship companies grow stronger and more competitive, thereby advancing the industry toward the mid‑to‑high end. Also, expedite the establishment and improvement of modern corporate governance systems within state‑owned steel and coal enterprises. Seventh, improve direct reporting of work‑related information. Establish a robust direct‑reporting system, requiring local governments and central enterprises to promptly submit monthly updates on capacity‑reduction progress. Both local authorities and enterprises should maintain detailed records of capacity‑reduction efforts to ensure data accuracy and completeness. Eighth, intensify public communication and opinion guidance. Local governments should promptly disseminate updates on progress, interpret relevant policies, address public concerns, and share exemplary practices and successful experiences, fostering a positive public discourse. Ninth, strengthen supervision, inspection, and coordination. Member units of the Inter‑Ministerial Joint Conference, while actively supporting local efforts, should conduct rigorous oversight and provide targeted guidance, monitor progress, and assist in resolving practical challenges. In addition, make early preparations for the upcoming State Council‑led special inspections on steel and coal capacity reduction.

Relevant officials and liaison officers from the member units of the inter-ministerial joint conference, along with responsible officials from certain central enterprises based in Beijing and representatives from relevant media outlets, attended the meeting at the main venue. Meanwhile, responsible officials from the people’s governments of all relevant provinces, autonomous regions, and municipalities directly under the central government, as well as from the Xinjiang Production and Construction Corps, together with officials from pertinent departments and enterprises, participated in the meeting at their respective sub-venues.