2016年CRI Overcapacity reduction still faces challenges: official（在线收听）

Zhao Chenxin, spokesperson for China’s National Development and Reform Commission, speaks at a news briefing in Beijing on August 16, 2016. [Photo: china.com.cn]

Zhao Chenxin, spokesperson for the National Development and Reform Commission, suggests local officials have been digging in their heels when it comes to making the tough cuts needed in the country's steel and coal production sectors.

"Over 9,500 tons of coal production has been reduced by the end of July, accounting for 38 percent of the annual target; meanwhile, 21 million tons of iron and steel have been slashed, fulfilling 47 percent of that target. Although the reduction has been sped up since July, we still failed to meet the requirement of attaining half of the annual target within half of this year."

The NDRC says there are several regions where local authorities have been unwilling to cut capacity in order to protect jobs and their local economies.

Officials suggest this is more evident in regions where the coal and steel industries make up a significant proportion of their local economy, saying local officials are worried about the negative impact on their GDP figures.

As such, the NDRC is calling on local governments to be more resolute in overcapacity reduction and carry out the tasks like an order from a military commander.

Zhao Chenxin says additional measures, such as accountability systems, public exposure and blacklisting could be in-store for officials who are unwilling to make the tough calls.

"The reduction target is specific to each piece of equipment and each mine, to ensure that we meet the goal by the end of this year. We are going to issue regular reports on the implementation as of this month to ensure the fulfillment of our tasks."

In calling out local officials, the NDRC does say the cuts to overcapacity aren't going to have a major impact on the country's growth or harm the world economy.

The NDRC suggests overcapacity remains a global problem resulting from the 2008 financial crisis, saying it a major problem in areas such as crude oil, iron ore and auto making.

For CRI, I'm Xie Cheng.