Home / Metal News / China Aims to Curb Overcapacity, Boost Emerging Industries for Low-carbon Economy

China Aims to Curb Overcapacity, Boost Emerging Industries for Low-carbon Economy

iconDec 31, 2009 08:37
Source:SMM

BEIJING, Dec. 31-- China is making concrete steps in pushing forward with its low-carbon economy by curbing overcapacity on one hand and boosting strategic emerging industries on the other.

CURBING OVERCAPACITY

At a press conference held here on Wednesday, Li Ningning, a senior official from the National Development and Reform Commission (NDRC), the country's top economic planner, said the overcapacity problem in a few industrial sectors such as coal chemical industry and vitamin C must be tackled.

China is the biggest producer of coal chemical industry. From January to November this year, China produced 314 million tons of coke, up 8.2 percent year on year, Li said.

In 2009, production capacity of coke expanded by 30 million tons while the export down 96 percent from a year earlier to 480,000 tons. Utilization rate of the capacity was 80 percent in 2008, he said.

 "China is a country comparatively rich of coal while lack of oil and gas, the mature technology and low investment threshold in the coal chemical industry seems conducive to the investment," said Li.

Restructuring of the coal chemical industry involves in eliminating outdated coal chemical production capacity, supporting technological innovations and strengthening policy guidance, according to Yuan Longhua, an official from the Ministry of Industry and Information Technology.

 Wang Jian, secretary general of China Society of Macroeconomics, had said in an article published by the Xinhua-run Outlook Weekly that 17 industries in China were faced with excessive capacity in 2008, rising from 11 in 2005. And the number of industries with excessive capacity is still rising, Wang added.

Chinese Premier Wen Jiabao told Xinhua on Sunday that overcapacity was a result of the long-existing problem of an imbalanced economic structure in China.

"To resolve the problem of overcapacity, the most important thing is to take economic, environmental, legal and, if necessary, administrative measures to eliminate backward capacity and, in particular, restrict the development of energy-consuming and polluting industries with excess capacity," Wen said.
 

excessive capacity
National Development and Reform Commission
NDRC
overcapacity
structural adjustment

For queries, please contact Michael Jiang at michaeljiang@smm.cn

For more information on how to access our research reports, please email service.en@smm.cn

Related news

SMM Events & Webinars

All