China issues guideline to cut overcapacity

China's State Council, the country's cabinet, has issued a guideline to tackle production overcapacity, according to a statement on the government's website on Tuesday.

The guideline mainly targets five sectors suffering from serious overcapacity, including steel, cement, electrolytic aluminium, sheet glass and shipping.

The move is a key measure for the government to achieve stable growth, restructuring, transformation and an upgraded version of the Chinese economy, according to the Guideline to Tackle Serious Production Overcapacity.

The guideline will play a key part in current and future efforts to transform the economic growth mode and boost industrial restructuring, the statement said.