China contributes to solving global capacity glut: premier

Chinese Premier meets with world business leaders during the Annual Meeting of the New Champions 2017, also called Summer Davos, in the northeastern coastal city of Dalian on June 28, 2017. [Photo: Xinhua]

Premier Li Keqiang said Wednesday that China has helped reduce excessive capacity, contributing to a wider move by the international community.

The capacity glut in some industries is the result of quantitative easing following the global financial crisis, and needs to be addressed by concerted efforts, Li said.

He made the remarks when meeting with world business leaders during the Annual Meeting of the New Champions 2017, also called Summer Davos, in the northeastern coastal city of Dalian.

China eliminated more than 65 million tonnes of steel production capacity and over 290 million tonnes of coal last year, beating government annual targets.

China "has not passed the buck but taken the initiative" in cutting excessive capacity, Li said.

This year, the country aims to slash steel production capacity by around 50 million tonnes and coal by at least 150 million tonnes.

Chinese Premier meets with world business leaders during the Annual Meeting of the New Champions 2017, also called Summer Davos, in the northeastern coastal city of Dalian on June 28, 2017. [Photo: Xinhua]

The capacity reduction is part of China's supply-side structural reform, which is part of efforts to upgrade the economy, said the premier.

Apart from reducing overcapacity, China has reduced market thresholds and cut taxes and fees for businesses, Li noted.

Thanks to those measures, the number of enterprises in China has doubled in the past four years to reach 27 million, with new technology and business types emerging, according to the premier.

Established by the World Economic Forum (WEF) in 2007, the Summer Davos is held each year in China, alternating between the port cities of Dalian and Tianjin.

From Tuesday to Thursday, around 1,500 politicians, officials, entrepreneurs, scholars and media representatives from over 90 countries and regions will discuss topics from inclusive growth to the new industrial revolution at the summer forum.