Xinhua quoted the State Council in a statement said the government will step up efforts to eliminate outdated production capacity.

The statement issued after a State Council executive meeting chaired by Premier Mr Wen Jiabao that eliminating outmoded production capacity was imperative to transform the economic growth pattern, boost economic growth quality and fight the global downturn.

The statement said eliminating outdated production capacity was also necessary to promote energy efficiency and emissions cuts and address global climate change. China had made positive progress in eliminating outdated production capacity, but the proportion of outdated capacity was still too high in certain key fields.

The problems should be tackled through the law, economics, technology and necessary administrative methods.

The State Council discussed specific targets to eliminate outdated capacity in fields such as electricity, coal, coke, ferroalloy, calcium carbide, iron and steel, non-ferrous metals, construction materials and light industry and textile industry.

According to the decision reached at the meeting to realize the targets, efforts should be made to improve market admission requirements, use market mechanisms, strengthen law enforcement, promote stimulus mechanisms and step up supervision.