Economics
China Puts Coal Production Capacity on Chopping Block
- Aims to cut 500 million tons of capacity; consolidate output
- Coal follows steel as Xi Jinping seeks to cut industrial bloat
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China plans to chop coal production capacity as part of efforts by President Xi Jinping’s government to cut industrial overcapacity and use cleaner energy sources amid sliding demand for the fuel.
The world’s largest coal consumer aims to eliminate as much as 500 million metric tons of annual output in three to five years, the State Council said in a statement Friday. The country also plans to consolidate an additional 500 million tons a year of capacity among fewer miners, ramp up financial support for some coal companies and encourage mergers, according to the guidelines. All coal companies should be able to produce least 3 million tons a year, it said.