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The views of inhibiting excess capacity in some industries by Multiple ministries was approved by the State Council

Post Time:Sep 30,2009Classify:Industry NewsView:400

Recently, the State Council agreed multiple ministries to carry out the views on inhibiting excess capacity in some industries.

The notice said, in order to cope with the impact of  the international financial crisis, the government considered the situation and developed and implemented the plan to expand domestic demand and promote economic growth. According to the requirement of "Maintain growth, expand domestic demand, readjusting the structure", the government made some industrial restructuring and revitalization plan and also some policies and measures to support the industrial development. At present, the policy effects have initially appear. The  enterprise production and management difficulties in the situation has eased. The overall industrial development are better.

However, though some progress are appeared in structural adjustment, but slowly. All regions and industry is also an imbalance. In many regions, there are still problems of excess capacity and redundant construction. Not only iron and steel, cement and other traditional industries are with excess capacity, but also wind power equipment, polysilicon and other new industries turn out the situation of excess capacity and redundant construction.

If the government doesn’t take any measures and policies to inhibit the bad situation of excess capacity and redundant construction. If not, it is hard to avoid vicious competition in the market. It is difficult to improve economic efficiency. The government and companies will miss the chance to adjust the structure of the market under the situation of the international financial crisis.

Various regions and departments should take this notice seriously and enhance the overall awareness, sense of responsibility and sense of urgency to carry out the notice. To meet the market demand, it shoulddevelop high-tech industries and services with a good grasp of the direction intensity and rhythm of adjustment, effectively changing the mode of economic development, improve quality and efficiency of economic development, promoting economic and social comprehensive, coordinated and sustainable development.

Source: GlassInChinaAuthor: shangyi

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