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China Will Cut 1.8 Million Jobs in the Steel and Coal Industries

Yin Weimin, Minister of Human Resources and Social Security, stated in a press conference on February 29, that China will cut 1.3 million jobs in the coal industry and a half million jobs in the steel industry, to solve the over capacity problem in these two industries.

According to Radio Free Asia, the State Council proposed, in January, to reduce crude steel production by 100 to 150 million tons, on top of the already planned elimination of 90 million tons of steel produced from old technology, over the next few years.

The National Development and Reform Commission (NDRC) recommended that 4,300 coal mines be closed and 700 million tons of coal production be cut over the next three years.

"Experts anticipate that, over the next two to three years, if such industries as steel, coal mining, cement, ship building, aluminum, and plate glass, which are severely over-capacity, cut their production by 30 percent, China will lose at least 3 million jobs."

Source: Radio Free Asia, March 1, 2016