BEIJING - China's top economic planner announced Thursday that the country's drive to cut overcapacity in steel and coal has progressed well.

As of the end of May, 42.39 million tons of crude steel capacity and 97 million tons of coal capacity had been cut, accounting for 84.8 percent and 65 percent of the annual goals, respectively, said the National Development and Reform Commission (NDRC).

China will phase out about 50 million tons of crude steel capacity and over 150 million tons of coal capacity this year, according to the NDRC.

By the end of June, all facilities producing inferior-quality steel bars will be dismantled, the NDRC said in May.

As excess capacity has weighed on China's overall economic performance, cutting overcapacity is high on the reform agenda. In 2016, China completed both its annual targets for coal and steel capacity reduction ahead of schedule.

The government plans to adopt more methods based on market rules and related laws while phasing out outdated capacity. It also decided to eliminate illegal production facilities and prevent those that have been shut down from opening again.