In order to tackle overcapacity in affected industries and pursue growth, China’s Industry and Information Technology Ministry (MIIT) has released new measures for its ailing sectors.
China will ban new projects in steel, cement, electrolytic aluminum, flat glass and shipbuilding industries before 2017, while gradually eliminating existing projects that were found to be below standards, MIIT Vice Minister Mao Weiming revealed at a press conference.
The state press agency Xinhua cited Mao as saying that while placing stricter standards in environmental protection, energy efficiency and safety, China will also encourage mergers and acquisitions in industries to crowd out outdated capacities.
The Government has been at pains to digest production gluts from an investment boom and generous subsidies in the past few years that saw producers in “favored” sectors expand rapidly with little regard to real market demand, reported Xinhua.
In 2013, China’s economy grew 7.7 percent, passing the Government target of 7.5 percent. The target for 2014 will be announced in March.
[mappress] SBT Staff, February 18, 2014