Measures to curb overcapacity

China has rolled out a production capacity swap program in steel, cement, electrolytic aluminium and plate glass sectors in a bid to solve overcapacity issues, according to a statement released Thursday by the Ministry of Industry and Information Technology.

New plants being built in any of these sectors should be matched by shutdowns of outdated plants with at least the same production capacity, said the statement.

However, the ministry said that eliminated capacity should exceed newly built capacity in the Beijing-Tianjin-Hebei, Yangtze River Delta and Pearl River Delta regions.

The ministry also noted that the capacity swap program only applies to outdated and excess capacities that have been listed by the ministry since January 1, 2013.