China cuts excess production capacity

China has seen positive developments in reducing excess production capacity as it works to improve economic structure, according to a report of the National Development and Reform Commission (NDRC) on Sunday.
In the first six months of the year, investment into the steel and electrolytic aluminum sectors dropped by 8.4 percent and 31 percent year on year respectively.
Major steel companies started to make profits in March. In May, they recorded a combined profit of 2.85 billion yuan (about 462 million U.S. dollars), 2.3 times that of April.
In the first four months, companies in the cement sector raked in a combined profit of 17.2 billion yuan, up 109.3 percent year on year.
Companies producing plate glass saw their profit up 78 percent to 1.8 billion yuan during the January-April period.
Shipbuilders received 40.80 million deadweight tonnages of new ship orders in the first six months, up 78.2 percent on a year-on-year basis.
China has been addressing overproduction in the above five sectors through measures such as closing small factories and limiting investment into these industries.
The NDRC said China will continue with the push to reduce the excess capacity and improve the efficiency of the economy.