The problem of overcapacity in China Drying Network is causing great concern at the national level. Xin Renzhou, deputy director of the Industrial Policy Department of the Ministry of Industry and Information Technology, recently revealed to the Economic Information Daily that, in order to further resolve the overcapacity and ensure the stable operation of the future industrial economy, the Ministry of Industry and Information Technology and the National Development and Reform Commission jointly formulated an overall solution to overcapacity (hereinafter referred to as the “planâ€). The next phase of the guidelines for overcapacity work. At present, the program has completed the final revision work, which will soon be staged.
Xin Renzhou also introduced that the plan calls for further improving the environmental protection, energy saving, and technical barriers for enterprises to access, and those companies that do not meet the standard will be ordered to rectify and even cancel the industry access qualification.
The "Economic Information Daily" reporter also learned that in the second half of the year, the Ministry of Industry and Information Technology will also intensively introduce a series of supporting policies to resolve overcapacity by the Joint Development and Reform Commission, the China Banking Regulatory Commission, and other departments, and will implement more market-oriented measures to strictly control cement, electrolytic aluminum, and flat glass. Such as key industries, forcing companies that do not meet national industrial policies and norms eventually exit the market.
The report “Industrial Economy Operation Report for the First Half of 2013†​​issued by the Ministry of Industry and Information Technology Supervision and Coordination Bureau shows that the problem of overcapacity in the industrial sector is further highlighted. At the end of the second quarter, the industrial capacity utilization rate was only 78.6% on average, and the idle capacity was as high as 21.4%. Affected by this, the contradiction of oversupply of products has intensified, and downward pressure on prices continues to increase. In the first half of the year, the ex-factory price of industrial producers fell by 2.2% year-on-year, and has dropped for 16 consecutive months.
According to Jing Xiaobo, deputy inspector of the Ministry of Industry and Information Technology Supervision and Coordination Bureau, in order to effectively solve the problem of overcapacity, the plan will adopt various methods to strictly control steel, cement, cement, and Electrolytic aluminum, plate glass and other key industries are facing the problem of excess production capacity.
Jing Xiaobo revealed that the plan will also adopt four “one batch†methods to resolve the excess production capacity, that is, to expand domestic demand and digest a batch; accelerate the implementation of the “go global†strategy and transfer a batch overseas; optimize the organizational structure, and merge and reorganize Batch; Strict environmental protection and safety energy consumption standards, eliminated a batch.
Xin Renzhou introduced that an obvious feature of the plan is that “the environmental protection, energy saving, and technical barriers to entry of enterprises have been further improved.†He added that according to the Ministry of Industry and Information Technology and other ministries and commissions, industries such as non-ferrous metals, coking and other access systems need to revise the industry access conditions every four years to adapt to the economic development trend.
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