China's State Council recently issued a document entitled " Suggestions for guiding the healthy development of industries by curbing overcapacity and excessive construction" on its governmental website.
According to the document, given the current evident overcapacity problem in China's steel industry and in other domestic industries, the relevant industries must curb overcapacity and excessive construction so as to facilitate structural adjustment and guide the healthy development of newly emerging industries.
The document also urges increased focus on technical advances in the steel industry by means of dated capacity elimination, mergers and restructurings, and relocation of mills. Moreover, no bank loans are to be issued for projects that are not in conformity with the government's plans for restructuring and reinvigorating domestic industries.