In 2009, in response to the financial crisis, the central and provincial party committees and provincial governments adopted a package of measures to expand domestic demand and maintain growth, so that the economic situation stabilized and rebounded. However, in many areas, there have been problems of overcapacity and redundant construction. Yesterday, the Provincial Development and Reform Commission issued an opinion, putting a “golden hoop†on the seven industries with overcapacity and repeated construction.
According to statistics, in the steel, cement, flat glass, coal chemical and other industries, the existing production capacity has exceeded 20% to 40% of the market demand. The relevant person in charge of the Provincial Development and Reform Commission said that if it is allowed to develop, it will lead to business failure. Or a series of problems such as under-employment, laid-off and unemployed people, and a large increase in non-performing assets of banks.
To this end, the Provincial Development and Reform Commission has specially formulated and formulated the “Implementation Opinions on Reducing Overcapacity in Some Industries of Our Province and Reducing Construction to Guide the Healthy Development of Industries†(referred to as “Opinionsâ€). The "Opinions" set strict industrial policy thresholds for seven major industries such as steel, nonferrous metals, cement, flat glass, coal chemical, polysilicon, and wind power equipment.
The "Opinions" require strict control of steel projects that simply build new capacity and expand capacity. In the next three years, in principle, it will no longer approve the construction and expansion of electrolytic aluminum projects, no longer deploy new alumina projects, and stop approving coke, calcium carbide and methanol projects that simply expand production capacity.
For cement projects that have not started before September 30, 2009, construction will be suspended; construction of cement industry projects that do not meet the principle of eliminating backward production capacity by equal amount is strictly prohibited.
All the proposed glass projects will not be filed; support key enterprises to develop high-tech products such as electronic flat panel display glass, photovoltaic solar glass, and low-emission coated glass.
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