"Provinces that rely on steelmaking to provide employment will somehow have to generate new jobs and stop providing handouts to zombie mills for the sake of social stability. But this will not be a quick process," said Syliva Cao, steel analyst at S&P Global Platts.
New year, new cuts stir debate about China's steel, coal excess
The new year has ushered in a new round of capacity cuts as China tries to combat excess in its bloated steel and coal sectors, but the moves are a drop in the ocean in the nation's long struggle to make its heavy industry more efficient.
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