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China Steel Plan Seen Spurring 400,000 Job Cuts, Instability

  • Metal industry leader says firings 'threaten social stability'
  • China will raise funds to help dismissed workers, Xinhua says
A Chinese steel worker reads a newspaper at a factory in Beijing.
Photographer: Guang Niu/Getty Images
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China’s plan to slash crude steel production capacity could eliminate 400,000 jobs and may fuel social instability, according to the state-run metals industry consultancy.

Steel production capacity will be cut by 100 million to 150 million tons, China’s State Council announced Sunday without specifying a time frame. That will translate into as many as 400,000 lost jobs, said Li Xinchuang, head of the China Metallurgical Industry Planning and Research Institute, according to a report by the official Xinhua News Agency Monday. China will raise funds to help dismissed workers, Xinhua said.