China’s premier Li Keqiang (pictured) has urged the country’s supply chain, particularly within the iron, steel and coal industries, to reform.
Li attended a Beijing symposium last week which called for efforts to clear ineffective supply, create new types of supplies and increase potential demand.
The Chinese government said in a statement the country “needs to make better efforts in improving production efficiency and relocating workers”.
China’s overcapacity in steel production meant the country’s large and medium-sized steel mills suffered losses of 53.1bn yuan in the first eleven months of 2015, according to the China Iron and Steel Association (CISA).
Steel prices have fallen from nearly 6,000 yuan per tonne to 1,600 yuan per tonne in the past two years. In the first eleven months of 2015, crude steel production in China dropped 2.2%.
At the event Cao Guowei, CEO of sina.com, suggested that many people who seek to start their own business should focus on using the internet as a platform for innovation in traditional industries.