China's steel minnows sidestep pollution rules to boost output

China's massive steel sector is a key battleground in the country's war on pollution, with air quality in major steel-producing cities like Tangshan and Handan routinely listed among the most toxic. Tougher environmental laws and a 2016 campaign to shut substandard capacity were designed to both cut smog and boost the share of law-abiding but unprofitable state firms by forcing out smaller, irresponsible rivals.

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