According to the latest central economic working conference, cutting overcapacity of steel and coal industries will be the priority next year. For ANBOUND, the overcapacity problem in various industries has led China's economic fundamentals to be worse. Throughout 2016, the focus of cutting overcapacity is limited within steel and coal industries, expanding the scale in 2017 is imperative. Besides the achievements, the troubles related to cutting overcapacity and increasing production are till obvious, and private sector is the target to cut overcapacity. Frankly speaking, if cutting overcapacity failed to produce some substantial results next year, the vulnerability and volatility of Chinese economy will be increased, which could further deteriorate the survival environment for companies.