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The Chinese government has scrapped the blanket production cuts on heavy industries and now allowed provincial authorities to plan the run rate based on the plant’s individual emissions record. Before this, the country was planning to implement blanket production cuts of 30-50 per cent on heavy industries across 28 cities.

Companies in the steel industry, cement, coke plants, metal casting and chemical production with ultra-low emission records will be exempted from the winter output cuts.

Provincial authorities would have to submit the production cut plans to the central government by end of October and no changes can be made afterwards.

Industry sources said that this is part of the Chinese government effort to cushion the country growth rate as trade war started showing effect. Many companies in the pipe and home appliance sectors have to curl-tail production due to slower export to the USA.