China announced an early reduction in steel capacity for 2016

China reached its goal of reducing steel production capacity by 45 million tons in 2016 ahead of schedule, having achieved the required result already at the end of October. China also hopes to meet its target of reducing 250 million tonnes of coal capacity by the end of the year, Li Pumin, secretary general of the National Development and Reform Commission (NDRC), said in a press briefing.

China plans to eliminate 100 to 150 million tons of annual steel production over the next five years, eliminating excess capacity. However, capacity cuts have failed to curb steel output this year. Europe and the United States have also accused China of dumping while dumping surplus steel overseas.

Li said China will balance coal supplies to ensure stable prices. China's power consumption in the first 10 months of 2016 increased 4.8 percent from a year earlier, the NDRC notes.

Li said the government will increase investment in key areas of the economy, including water management, urban sewerage and rural infrastructure. The state has approved 15 major investment projects totaling 218.8 billion yuan. The government is also stepping up efforts to attract private investment in infrastructure projects.