The State Council is studying the issue of redundant construction in emerging industries such as polysilicon and coal-based chemical manufacturing, and discussing the current status and prospects of these chemical industries
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On the 26th, the Premier of the State Council presided over an executive meeting of the State Council to discuss measures to curb overcapacity and redundant construction in certain industries and to promote the healthy development of these sectors. The meeting noted that, in order to cope with the impact of the international financial crisis, since the beginning of this year, in line with the overall objectives of \"maintaining growth, expanding domestic demand, and adjusting the economic structure,\" plans for the adjustment and revitalization of key industries have been formulated, and a series of policies and measures aimed at promoting structural adjustment have been introduced, including controls on total output, phasing out outdated technologies, mergers and reorganizations, and independent innovation. At present, the effects of the policies have begun to show; the difficulties faced by enterprises in their operations and production have eased, and the overall development of the industry is on an upward trend. However, the progress of some industrial restructuring is slow; issues such as overcapacity and redundant construction remain prominent in certain industries. Not only do traditional industries with overcapacity, such as steel and cement, continue to expand blindly, but there is also a tendency toward redundant construction in emerging industries like wind power and polysilicon. At present, China’s economy is in a crucial phase of stabilization and recovery. It is essential to earnestly implement the scientific outlook on development, place greater emphasis on promoting structural adjustment while ensuring economic growth, resolutely curb overcapacity and redundant construction in certain industries, and vigorously develop high-tech industries and service sectors that meet market demands. It is necessary to grasp the direction, intensity, and pace of adjustments, effectively transform the mode of economic development, improve the quality and efficiency of economic growth, and promote comprehensive, coordinated, and sustainable economic development. The meeting emphasized the need to combine efforts to control new growth with those to optimize existing assets, to integrate targeted guidance with selective support and restraint, to foster emerging industries while upgrading traditional ones, and to merge market-driven mechanisms with macro-control. It is necessary to make use of legal, economic, technical, and standard-based approaches, as well as appropriate administrative measures, and to coordinate industrial, environmental protection, land use, and financial policies in order to create a unified force that promotes the healthy development of industries. At present, it is necessary to focus on strengthening guidance for the development of industries such as steel, cement, flat glass, coal chemicals, polysilicon, and wind power equipment. First, strict market access controls must be implemented. Further strengthen the approval management for projects in industries with overcapacity such as steel; approval powers must not be delegated, and it is strictly prohibited to break up projects into smaller ones for unlawful approval. Strictly issue production licenses for products such as deformed steel bars, wire rods, and cement.
These problems do exist. For example, in the past China relied almost entirely on imports for silicon-related products, but now numerous companies have emerged in this field. It’s fine if their products are of high quality, but many of these companies operate in the low-quality market segment; those that offer high quality at competitive prices still have to be imported from abroad. Alternatively, some foreign companies with advanced technologies establish their own production facilities in China, which is indeed frustrating. **More guidance should be provided.
In my opinion, industries such as coal chemical processing, polysilicon, and wind power equipment have great prospects for development; the key is to implement the relevant policies effectively
The key is the attitude of local officials and local **! !
It was actually something that was understood without being spoken out loud; everyone simply chose to remain silent out of mutual understanding. Only when the project was approved, when the paper for printing money ran out, and when the money arrived and the son emigrated, could those claims no longer be sustained. Even the woman selling vegetables across the street knew that there was an excess of money – only then did they seem to realize it. I wonder whether they’re truly stupid or just pretending to be innocent. It’s as if they’re the last person on Earth who doesn’t realize that China’s economy is nothing but a bubble. It’s so fake, so disgusting........... I really can’t stand it. They’re even more innocent than my A’jiao...... So silly and naive......
What was said upstairs is absolutely correct! Which private enterprise would invest in building new capacity in an industry already suffering from overcapacity? Then it’s one’s own money being spent. State-owned enterprises or local entities are different; they all try to find hot topics in order to secure projects, so that those involved can take advantage of the situation for their own benefit. At least there’s no need to worry about whether the project will generate profits after it’s completed – if there are losses, that’s someone else’s problem to deal with.