China's State Council has issued an action guideline for 2016 quality development, requiring the industrial sector to reduce overcapacity.

The guideline says high energy consuming and polluting industries, including coal, steel, electrolytic aluminium and petrochemicals, should strictly adhere to production permits and the industry admission system, to reduce capacity according to required standards.

China will also work on enhancing key technologies to improve such important sectors as autos, automatically controlled machine tools, rail transportation equipment, and large technical equipment.