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News Summary: China seeks to cut industry bloat

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The Associated Press | November 5, 2013 12:44 PM EST | AP


TRYING AGAIN: Chinese leaders have ordered local officials to stop expanding industries such as steel and cement in which supply outstrips demand, a Cabinet statement said Tuesday, in a sign previous orders were ignored.

SUPPLY GLUTS: Beijing has been trying since 2009 to cut excess production capacity, which has triggered price-cutting wars that threaten the financial health of some industries. But lower-level leaders whose promotions depend on economic development have continued to support local industries.

STERN WARNING: "Those who still violate discipline will be heavily punished," said the deputy director of the Cabinet planning agency, the National Development and Reform Commission, Hu Zucai, according to the government newspaper China Daily.