China to Cut 500,000 Steel and Coal Jobs in 2017

China will cut another 500,000 steel and coal jobs this year to reduce excess production capacity, the labor minister said Wednesday, amid complaints the industries are flooding global markets and depressing prices.

Beijing is in the midst of a multiyear effort launched last year to shrink bloated industries including steel, coal, cement, aluminum and glass in which production exceeds demand. That has fed a flood of low-cost exports that Washington and Europe complain are hurting foreign competitors and threatening thousands of jobs.

The government will provide support for the laid-off workers to find other jobs, start companies or retire, Yin Weimin said at a news conference.

“This year, to reduce excess capacity, we need to make accommodation for 500,000 workers,” Yin said.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza