China promises to cut production in steel, coal

beijing — China’s top economic official set a robust growth target on Monday and promised more market opening and cuts in a bloated steel industry that has inflamed trade tensions with Washington and Europe.

The growth target of “around 6.5 per cent” announced by Premier Li Keqiang to China’s ceremonial legislature, little-changed from last year, would be among the world’s strongest if achieved. The premier also promised progress on developing electric cars and other technology and better regulation of China’s scandal-plagued financial industries.

The meeting of the National People’s Congress is overshadowed by constitutional changes that would allow President Xi Jinping to stay in power indefinitely, but businesspeople and economists also are looking for signs Xi is speeding up reform. That follows complaints Beijing did too little while Xi focused on amassing power since becoming Communist Party leader in 2012.

“We will be bolder in reform and opening up,” said Li.

The premier promised “substantive progress” in a multi-year campaign to reduce production capacity in steel, coal and other industries in which supply exceeds demand. The United States and the European Union complain that surplus of Chinese steel and aluminum flooding into global markets depresses prices and threatens jobs.

This year’s targets include eliminating 30 million tonnes of production capacity in the steel industry, Li said. It was unclear how that might affect China’s annual output of about 800 million tonnes.