Ning Jizhe, deputy head of the National Development and Reform Commission (File photo)

China is committed to cutting overcapacity based on market principles and the rule of law, Ning Jizhe, deputy head of the National Development and Reform Commission, said on Tuesday in Beijing

Cutting overcapacity is the primary task of supply-side reform. China has cut steel production by about 170 million tons, and coal by 800 million tons, which has helped China fulfill its objectives ahead of schedule. This also bring some benefits to industrial structural reform and competitive order in the market, especially for the overall supply-demand structure.

He also said work in 2018 will focus on four aspects: cutting ineffective supply, restructuring of steel and coal industry, reforms on enterprise structures and resettlement of employees.

The 2018 target, he said, is to reduce steel production capacity by about 30 million tons and coal production by 950 million tons.