The National Development and Reform Commission says that progress was slow in reducing over-capacity in China's coal and steel sectors in the first half of this year but the country will introduce more measures to reach its targets in the latter half of this year.

"We have been making progress in the de-capacity effort in the past months. But still we can see that some provinces or cities are lagging behind. We will urge all parts involved in the effort to reach our goal on time for this year," said Xu Shaoshi, director of  National Dev't & Reform Commission.

China has eliminated 95 million tons of coal production and 21.26 million tons of steel production in the first seven months of this year. That's just 38 percent and 47 percent of the country's annual targets respectively.

Xu says China will strictly restrict approval for new production lines and properly handle the problems that come after the production lines are shut down. The NDRC will also send inspection teams to supervise the reduction in capacity.