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Repost: Plan for the Adjustment and Revitalization of the Light Industry and Petrochemical Sector Approved 2009-02-20 China Securities Journal On the 19th, Premier ** chaired an executive meeting of the State Council, during which the plan for the adjustment and revitalization of the light industry and petrochemical sector was reviewed and approved in principle; it was also decided to step up the implementation of the policy aimed at bringing home appliances to rural areas. The meeting held that light industry is an important sector for enriching people’s material and cultural lives, undertaking crucial tasks such as boosting the market, creating jobs, and serving agriculture, rural areas, and farmers. To revitalize the light industry, comprehensive measures must be taken to strive to expand market demand in urban and rural areas, as well as to consolidate and develop international markets ； Accelerate independent innovation, promote structural adjustment and industrial upgrading, and pursue a new path of development based on green ecology, quality and safety, as well as a circular economy. First, it is necessary to actively expand consumption in urban and rural areas and increase effective domestic supply. Improve foreign trade services and maintain export market share. Second, it is necessary to accelerate technological progress. Focus on promoting the localization of equipment and the industrialization of key technologies, and accelerate technological upgrades in industries such as papermaking, home appliances, and plastics. Establish an industry exit mechanism to promote energy conservation, emission reduction, and environmental protection. Third, food safety must be strengthened. Reform the food processing industry, raise the entry barriers, improve recall and delisting systems, and increase penalties for the production and sale of counterfeit and substandard products. Fourth, it is necessary to strengthen the development of domestic brands, support leading brand companies in carrying out cross-regional mergers and reorganizations, and increase industry concentration. Fifth, it is necessary to strengthen guidance through industrial policies, promote industrial relocation, and foster the development of regions and industrial clusters characterized by light industry. Sixth, it is necessary to strengthen enterprise management and comprehensively improve the quality of light industry products. The meeting decided to lift processing trade restrictions on certain labor-intensive products as well as those with high technological content that are environmentally friendly and energy-saving. Further increase the export tax rebate rates for certain light industrial products. Increase fiscal, tax, and credit support for small and medium-sized light industry enterprises. Further expand the range of products eligible for subsidies under the “Home Appliances to Rural Areas” program by including microwave ovens and induction cookers in this category; lift the restriction that each household can purchase only one unit of each type of product to allow two units per household. The central government will increase its support for ethnic minority areas and regions severely affected by earthquakes. The meeting noted that the petrochemical industry is resource- and capital-intensive, features high levels of industrial interconnection, and has a large economic scale; it plays a crucial role in promoting the upgrading of related industries and driving economic growth. To revitalize the petrochemical industry, it is necessary to stabilize the market for petrochemical products while accelerating structural adjustments and optimizing the industrial layout, focusing on enhancing innovation capabilities and management levels in order to continuously strengthen the industry’s competitiveness. First, it is necessary to maintain the stable operation of the industry. Implement comprehensive measures such as **expanding domestic demand, revitalizing key industries, and increasing food production to boost the consumption of petrochemical products. Strengthen import and export supervision and improve the price formation mechanism for energy products. Second, it is necessary to improve the capacity to ensure agricultural inputs. Adjust the production structure of fertilizers and pesticides, optimize resource allocation, reduce costs, and increase supply. Improve the system for strategic stockpiling of chemical fertilizers, and strengthen the development of the supply network for agricultural diesel. Third, it is necessary to coordinate the layout of major projects and vigorously promote technological upgrades. Accelerate the implementation of major oil refining and ethylene projects under construction to strengthen the momentum for industrial development. Promote the comprehensive utilization of resources and waste recycling technologies to develop a circular economy. Fourth, it is necessary to control the total volume and phase out outdated production capacity. Stop approving coal chemical projects such as coke and calcium carbide that merely aim to expand production capacity, and resolutely curb the uncontrolled growth of coal chemistry. Fifth, it is necessary to increase policy support. Accelerate the establishment of refined oil reserves, improve tax policies, increase investment in technological upgrades, and provide greater credit support to petrochemical enterprises. Sixth, it is necessary to improve the corporate governance structure, strengthen scientific decision-making, enhance risk prevention and control capabilities, and raise the management level of petrochemical enterprises.