China will cut outdated steel production capacity by a total of 27 million tonnes this year, said Premier Li Keqiang at the opening of the annual meeting of parliament on March 5, part of the government’s efforts to tackle air pollution.<br /> <br /> China has published a series of policies and plans aimed at addressing environmental problems but it has long struggled to bring big polluting industries and growth-obsessed local governments to heel.<br /> <br /> In order to slash steel production capacity up to 60 million tonnes by 2017, northern China’s Hebei province recently announced that 16 blast furnaces and 3 converters of 16 steel mills in five cities including Tangshan, Handan, Qinhuangdao, Xingtai and Zhangjiakou were knocked down, cutting iron and steel making capacity by 6.71 million tonnes and 1.49 million tonnes, respectively.<br /> <br /> In 2014, the demand for steel will still be mainly driven by the accelerating of urbanization and investment in key sectors.<br /> <br /> The central government plans to invest 457.6 billion yuan in low-income housing, railways, agriculture, energy-saving, social undertakings, etc., completing more than 4.8 million affordable housing units for low-income families and starting construction on over 7 million units, including 4.7 million units of shantytown reconstruction, Li said in the report.<br /> <br /> Additionally, the government will slash cement production by 42 million tonnes, and shut down 50,000 small coal-fired furnaces across the country, Li said.<br /> <br /> To curb pollution, China will also carry out reforms in energy pricing to boost non-fossil fuel power. Li promised change in "the way energy is consumed and produced" through the development of nuclear and renewables, the deployment of smart power transmission grids, and the promotion of green and low-carbon technology.<br /> <br /> <p> The National Development and Reform Commission, the country's economic planner, said in its report that new guidelines would be issued on relocating key industries away from urban centers to help tackle smog. </p> <p style="text-align:center;"> <img src="/upfiles/news/image/20140308/20140308154617_4406.jpg" alt="" /> </p> <div style="white-space:nowrap;"> <br /> </div>