A worker at a machinery equipment company in Huaibei, East China's Anhui province, June 29, 2016. [Photo/IC]

Pressing ahead with overcapacity cuts

In addressing the B20 Summit, Xi said, "China has taken the most robust and solid measures in cutting excess capacity and we will honor our commitment with actions," which sent a strong signal that China will take multiple measures to reduce capacity.

Zhu Guangyao, vice-minister of finance, revealed that China is progressing with the establishment of bankruptcy trial courts across the country, a major legal means to wipe out overcapacity.

According to the National Development and Reform Commission (NDRC), the country's top economic planner, China met 39 percent of the annual target for reducing coal capacity and 47 percent of the annual tasks for steel capacity cuts as of the end of July.