China's Ministry of Industry and Information Technology, a major undertaker of slashing overcapacity in the nation's steel sector, says on Monday that concrete achievements have been made in reducing steel production overcapacity in the first half of 2016. 

China has fixed the goal to slash steel production by 45 million tons by 2016.  Feng Fei, vice minister of the Ministry of Industry and Information Technology, says China has slashed 13 million tons of steel production in the first half of this year.

"We have broken down the 45 million tons target to the nation's 28 provinces and major cities. We have also issued financial incentives to encourage the de-capacity effort. That's why we finished 30 percent of the goal in just six months," he said.

The vice minister also says he is confident China will reach its target in 2016. 

"In the latter half of this year, we will urge local governments to get more engaged in the reducing overcapacity effort and we will also stop building up new production lines," Feng said.

The vice minister also assures that China will give more policy and financial support to cut steel production.