In May, the government approved a new steel project by Baosteel, planning to build a new facility in Zhanjiang of Guangdong while the provincial government promised to close down excess capacity elsewhere in the province. The project was started very quickly after approval.
However, the latest news suggests that although the project was started, and there was some sort of groundbreaking ceremony, the construction site went totally silent the day after groundbreaking. Because of overcapacity in the steel industry (so much that steel companies have to start selling pigs), there is little point in investing more, thus it seems that Baosteel is determined to slow down the construction as much as it can. So they have pretty much stopped.