China's largest steel base, Hebei province, will cut 67.26 million metric tons of capacity by 2017 without putting too much emphasis on local growth in gross domestic product in order to create a sustainable development of the industry and improve air quality.

"We should not pursue economic growth under the current industrial structure because of its high energy use and environmental cost," said Zhou Benshun, secretary of the Communist Party of China Hebei Provincial Committee.

"It's time to make changes," he added.