China’s push to cut steel and coal production is paying off — literally.
A shrinking supply has led to a price increase for steel and coal. In many cases, producers are now turning a profit. In the first quarter of this year, they made nearly $3.5 billion. In the same period last year, they lost nearly $1.3 billion dollars.
That comes amid China’s renewed effort to cut steel and coal production in 2017. So far this year, China has cut coal production by nearly 70 million tons — 46 percent of the year’s goal. It has cut steel production by 32 million tons — 63 percent of the annual goal.
China is pushing other steel and coal-producing nations to make similar cuts.
“China, as a major economy in the world, is the first to take action to cut overcapacity,” said Chinese Vice Finance Minister Zhu Guangyao. “We hope that all the countries in the world can strengthen cooperation. We want more action, fewer slogans, more cooperation and less condemnation.”
CGTN’s Elaine Reyes explains how China is helping workers who are being laid off amid the production slowdown.
Shuaihua Wallace Cheng on China’s steel and coal
CGTN’s Elaine Reyes interviewed Shuaihua Wallace Cheng, managing director for ICTSD China (International Centre for Trade and Sustainale Development) about China’s economic strategy on steel and coal.