China to ban construction of steel facilities

China has unveiled a new action plan for the steel industry, which includes a set of measures to address the chronic problem of oversupply. This is happening against the backdrop of Beijing's intensifying efforts to end a series of price wars raging in the economy, the South China Morning Post writes.

The plan, which includes a strict ban on the commissioning of additional capacities and measures to accelerate the decommissioning of obsolete equipment, could set an example for other industries suffering from overproduction and excessive competition.

A document published by the Ministry of Industry and Information Technology, together with a number of other departments, on Monday calls for strict control over steel production capacity and volume. It is emphasized that the stabilization of the industry requires