By Li Weiming, Ren Shihua, Tian Hui, Tang Shasha & Wang Xin, Research Team on “The Sustainable Development of the Coal Industry with the Cutting of Overcapacity in Hebei Province”, China Economic Times, DRC

Research Report, No.211, 2018 (Total 5486) 2018-12-5

Abstract: Cutting overcapacity of the coal industry in Hebei province is an arduous task and also a typical case in point. As an important move to launch the supply-side structural reform and implement energy revolution strategies to propel high-quality development in China, this work will provide useful experience for various cities, especially those coal-based energy consumption cities in the central and eastern regions. In recent years, Hebei province has enforced the policy of cutting overcapacity in the coal industry and gone beyond the annual targets set for 2016 and 2017. However, the reduction of overcapacity in the coal sector has led to the looming up of relevant issues, such as debt disposal, personnel resettlement, structural transformation and upgrading. Therefore, it is urgent to make joint efforts to give full play to the dominant role of industrial enterprises. The central authorities need to provide local governments with more guidance for concerted moves. In addition, the related departments need to establish and improve the supporting system for cutting overcapacity, push ahead with the reform of the institutional mechanism in state-owned enterprises, solve the relevant issues pertinent to cutting overcapacity in the coal sector in Hebei province and steadily promote the supply-side structural reform to propel the high-quality development in China.

Key words: Hebei province, cutting overcapacity; asset restructuring, personnel resettlement, structural transformation and upgrading