China strictly controls emerging industries such as wind power equipment with excess capacity in the six industries

The Chinese economy, which has just emerged from the financial crisis, has also encountered the problem of increasing excess capacity. National Development and Reform Commission officials said on Monday that China has included six major industries, such as steel and cement, in its key regulatory catalogues. It will coordinate industrial, environmental protection, land and financial policies, and use necessary administrative means to regulate and guide it.

Inspector of the Industry Coordination Department of the National Development and Reform Commission Xiong Bilin said at the press conference here on the 19th that as of now, China's industrial restructuring has made some progress, but the overall progress is not fast. The issue of overcapacity and redundant construction in many areas is still outstanding, and some are even worse.

In a notice recently issued by the State Council, the six industries of iron and steel, cement, flat glass, coal chemical industry, polysilicon, and wind power equipment were identified as the focus of regulation and guidance. Industries with outstanding overcapacity such as electrolytic aluminum, shipbuilding, and soybean crushing have also been named.

According to Xiong Bilin, the six major industries will no longer approve projects that increase production capacity. For projects that do not meet the requirements of industrial policy and are not approved or approved in accordance with stipulated procedures, no financing shall be allowed through corporate bonds or IPOs.

It is worth noting that, in addition to traditional industries such as steel and cement, new industries such as polysilicon and wind power equipment have also been listed on the “black list” this time. Xiong Bilin pointed out that the outstanding problem in these two industries is that many production capacity is under construction, especially when such projects are carried out in some localities. The environmental capacity and supply of resources are not taken into account in the region. There have been investments, repeated introductions and repetitions. The construction issue, as a control object, is mainly to promote independent innovation, grasp the development rhythm, and guide its orderly development.

Overcapacity is not a new issue in China. Since 2004, the suppression of excess production capacity has been an important part of the official macro-control. However, an executive meeting of the State Council was held exclusively on the issue of excess production capacity, one in November 2005 and one on August 26 of this year. In the critical period when the economy has stabilized and picked up, the ten departments will join forces to curb excess production capacity. This shows that the problems are severe.

Compared with previous policy measures, Xiong Bilin said that this official regulation will comprehensively use law, economy, technology, and necessary administrative means. It not only strictly examines and approves projects, implements controlled financial policies, but also introduces the information release system. And accountability. Once violations are found, the official will punish them without a penalty.

Regarding whether the 4 trillion economic stimulus package has intensified the question of overcapacity, Xiong Bilin said that the two are not necessarily linked. Taking the steel industry as an example, he said that the actual output of China's steel has reached 660 million tons in 2008, plus 58 million tons of projects under construction, with a total production capacity of more than 700 million tons before the financial crisis. , "It is already very obvious surplus."