China's National Development and Reform Commission has been holding several conferences to look at ways to cut output in the key industrial sectors of steel and coal, as well as re-balancing regional differences.

The commission had planned to cut overcapacity in steel by 45 million tons and coal by 250 million this year. However -- at only 30 percent -- it was well behind this target by the end of the first half of the year, so you'd think major changes need to be implemented to achieve its 12-month goal in the second half.

However, the commission isn't panicking: in fact, it expects the relevant businesses to come close to the target in early November. It's urging them to reduce ineffective supplies, while upgrading and transforming its effective supplies for higher quality. Reducing the amount of "Zombie companies" -- or economically-unviable businesses -- is another important task emphasized by the commission. Statistics show that between 2005 and 2013, seven percent of businesses were depending on aid from the government and banks. Among them, more than half were in the steel industry.