China's National Development and Reform Commission announced that the China shut down 18.4 million tonnes of iron and steel production capacity in the H1 of 2007 to reduce energy consumption and greenhouse gas emissions.

According to the official Chinese news agency Xinhua in April 2007, the China's 10 major steel manufacturing regions originally pledged that by this year end, 22.6 million tonnes of iron production capacity and 8.7 million tonnes of steel capacity would be closed in Beijing and nine provinces including Hebei, Shanxi, Shaanxi and Liaoning.

China hopes to phase out 100 million tonnes of antiquated iron capacity and 55 million tonnes of steel making capacity by 2010 in order to save 50 million tonnes of coal equivalent and 100 million of water and reduce 400,000 tonnes of sulfur dioxide emissions yearly.