The State Council is tackling production overcapacity, according to a statement on October 15.

The Guideline to Tackle Serious Production Overcapacity lists five prime sectors with serious overcapacity: cement, electrolytic aluminum, sheet glass, shipping and steel. The move is key to achieving stable growth and upgrading the Chinese economy.

The guideline lists tasks to deal with overcapacity, including forbidding new projects that aim to expand capacity and reappraising projects currently underway.

Growth through innovation should be stressed and mergers encouraged. Domestic and global demand should be explored, consolidated and expanded. Government should work toward better allowing the market to determine demand.