But they underlying problem remains. These companies, many of them steel smelting and fabrication firms continue to lose money because China greatly over-invested in this industry to employ the region around Beijing. Every plate or I-beam of steel they sell around the world is sold at a loss being subsidized by China's banks.

The only solution is closing a large number of these steel makers.

It's amazing to realize that steel plant closures in China will reduce demand for Australian coal, but not Chinese coal. Why? Because it was far less expensive to purchase coal from highly automated mines in Australia than it was to begin investing the needed hundreds of Billions of Dollars needed to modernize Chinese coal mines where miners still use pick axes deep underground.

Even President Xi's predecessors realized they couldn't continue to absorb this surplus steel building empty "new cities". This situation is astounding, but that's what it really is.