Development and Reform Commission: Three measures to curb overcapacity and redundant construction

On the issue of preventing overcapacity and redundant construction in some industries, the report of the Development and Reform Commission stated that the State Council issued the Development and Reform Commission and other departments in September 2009 to curb overcapacity and redundant construction in some industries. Notice on Several Opinions on Guiding the Healthy Development of the Industry, setting clear targets for industries such as steel, cement, flat glass, coal chemical, polysilicon, wind power equipment and electrolytic aluminum in terms of elimination of backwardness, energy conservation and emission reduction, and market access. Requirements and policy measures. Relevant departments have issued guidance on further improving financial services, supporting the adjustment and revitalization of key industries, and curbing overcapacity in some industries, and strictly restricting the financial institutions' over-capacity, “two highs and one capital” and redundant construction industry credit. In the next step, in accordance with the spirit of the central government, we will implement the policies and measures that have been promulgated, resolutely curb the blind expansion and redundant construction of overcapacity industries, and resolutely eliminate backward production capacity:
The first is to strengthen market access management. Strictly approve the approval of over-capacity industries such as steel, further improve the access threshold for energy consumption, environmental protection, and comprehensive utilization of resources, and establish and improve access standards for emerging industries such as polysilicon.
The second is to strengthen the coordination of industrial policies and finance, environmental protection, land and financial policies. Further increase financial support and encourage local governments to promote mergers and acquisitions and eliminate backward production capacity. Enterprises that fail to meet environmental standards shall be subject to deadlines for treatment or suspension of production, and loans for non-compliance with industrial policies shall not be granted. Encourage enterprises to make excess capacity play a new role in some new areas through technological transformation.
The third is to strengthen information guidance. Further improve the monitoring and analysis of the industry's production and sales situation and the release of information on domestic and international market demand, and guide the investment behavior of society and enterprises.
The report of the National Development and Reform Commission said that recently, the 98th executive meeting of the State Council reviewed and approved the "Notice of the State Council on Further Strengthening the Work of Eliminating Backward Production Capacity (Draft for Review)", with electricity, coal, steel, cement, non-ferrous metals, Focusing on industries such as coke, paper making, tanning, printing and dyeing, we have determined the requirements and objectives for eliminating backward production capacity this year and next, further implementing responsibilities, strengthening policy-binding mechanisms, improving policy measures, and intensifying supervision and inspection. This notice will be officially issued in the near future.
 

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