US President Barack Obama has urged China to accelerate measures to tackle overproduction of industrial goods.
China has been accused of unfair practices by firms overseas for dumping products at low prices in their home markets.
In April, China promised to reduce its steel output, following a crisis meeting attended by 30 nations.
The President met Premier Li Keqiang on the sidelines of the United Nations General Assembly in New York.
In a statement from The White House, President Obama also urged China to establish a level playing field, so that all firms can compete fairly in the country.
The European Union Chamber of Commerce in China had accused China of not doing enough to address the issue of overcapacity.
The European Chamber President Joerg Wuttke said: “Although the Party’s annual Central Economic Work Conference has listed addressing overcapacity as a priority every year from 2007 to 2015, fundamental changes have not yet taken place.
“Tackling overcapacity is now more urgent than ever: the cost of maintaining the status quo is far too high.”