**Make a move! Accelerate the phasing out of inefficient and outdated production capacity in the refining industry!

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On May 20, at a press conference held by the **Development and Reform Commission**, Li Chao, deputy director of the Policy Research Office of the commission and its spokesperson, said that currently China’s economy is in a period of transition from old to new drivers of growth; new industries, business models, and forms of operation are emerging one after another, while traditional industries are accelerating their transformation and upgrading. During this process, certain industries did face structural problems; some engaged in reckless investment, while others failed to keep up with the pace of technological advancements. “Some companies are trapped in ‘competitive involution’, with some selling at low prices, extremely low prices, or even below cost; others produce and sell fake goods or pass off inferior products as high-quality ones. All of these violate the boundaries and limits of market competition, distort market mechanisms, and disrupt the order of fair competition; they must be addressed. ”Li Chao said. How to rectify “involutionary” competition? Li Chao stated that **the National Development and Reform Commission, in collaboration with relevant parties, has taken industry-specific measures tailored to the root causes of the problems. These efforts aim to address both the symptoms and underlying causes of structural contradictions in key industries, thereby promoting their healthy development and quality improvement.** First, adhere to innovation-driven development and accelerate the transformation and upgrading of industries. Strengthen the role of enterprises as the main drivers of technological innovation, support them in using such innovation to improve product quality and core competitiveness, increase high-end production capacity and high-quality supply, continuously explore diversified markets, and enhance their resilience in development. Second, strengthen local constraints and make greater efforts to eliminate local protectionism and market segmentation. In January of this year, the \"Guidelines for the Development of a Unified National Market (Trial Version)\\" were issued, stipulating that all regions must not violate the established limits by implementing preferential policies in areas such as finance, taxes, prices, land use, and resources and the environment. In response to the persistent problem of local protectionism and market segmentation, as well as the constant emergence of new forms of such practices, efforts are being made to address these issues intensively. Third, optimize the industrial layout to curb the uncontrolled expansion of outdated production capacity. Leverage the role of quality and standards as a support, promote mergers and reorganizations through market-based mechanisms, and accelerate the phasing out of inefficient and outdated production capacity in industries such as oil refining and steelmaking ； Scientifically evaluate new capacity expansion projects in industries such as coal chemical processing and alumina production, to prevent blind new construction ； Strengthen industry self-discipline and encourage new energy vehicle and photovoltaic enterprises to focus on technological research and development. Fourth, strengthen market supervision to purify the competitive environment in the market. Tough measures will be taken to address issues such as low-quality products at low prices in the market; unfair competition and price-related violations will be investigated and dealt with in accordance with the law. Activities of infringement, counterfeiting, and production and sale of fake goods will be firmly cracked down on. Efforts to supervise and inspect product quality will be intensified, so as to jointly maintain a market order based on fair competition and the principle of survival of the fittest, and to ensure that the mechanisms of the market can function effectively.