US$15.3 Billion To Cut Industrial Capacity In China

BEIJING, May 19 (Bernama) -- China will allocate 100 billion yuan (US$15.3 billion) in subsidies to steel and coal companies for cutting capacity, reported Xinhua News Agency on Wednesday. The allocation would mainly be used to resettle laid-off workers, the agency quoted the Ministry of Finance. "Mergers, acquisitions, debt restructuring and bankruptcy should guide the exit of weak steel and coal companies that cannot make profits. "China should also take a combination of measures to resolve overcapacity, including tax, land, fiscal and financial reforms," the ministry was quoted as saying. In the past three years, China had eliminated more than 90 million tonnes of steel capacity and over 200 million tonnes of coal capacity. --BERNAMA