China plans to continue its drive to reduce excess production in the steel sector next year and more market- and law-based methods will be adopted in reducing production capacity of nonferrous metals and building materials sectors, said a top official of the National Development and Reform Commission (NDRC).

Excessive production capacity cut is the top priority of the country's supply-side structural reform, said Ning Jizhe, vice-minister of the commission, at a news conference on the sidelines of the ongoing national legislative and political advisory meetings. "China will continue the drive next year on the basis of reduction in production this year," he said.

China plans to cut 50 million tons of steel production capacity, reduce 150 million tons of coal production capacity, and eliminate or postpone building of 50 million kilowatt coal-fired power generation capacity this year.

After meeting the target this year, China's annual consumption of steel would account for about 80 percent of production, a level that is normal in a market economy, Ning said.

The work of capacity reduction in the nonferrous metals and building materials sectors should be carried out through using more market- and law-based methods, he added. 

Ning also said the efficiency of coal use be improved to reduce pollution.