Overcapacity is one of the major problems in the world's economic cycles. Now it's China's turn to deal with it.
This year, the central government carried out a series of measures designed to ease the problem, trying to establish a long-term system to solve it and accelerate industrial upgrading. >>>
New incentives weighed to curtail overcapacity
China will use fiscal and financial incentives to encourage consolidation in a number of industries, Minister of Industry and Information Technology Miao Wei said.
In a sign of shifting policy focus, Miao said that instead of mandatory, administrative-oriented consolidation, the industry regulator will do more to create a sounder environment for mergers and acquisitions. >>>
Tackling overcapacity is top priority: Planner
China's top economic planner has pledged to take unprecedented steps to tackle industrial overcapacity as official data suggest the rate of industrial capacity utilization in the first half of the year hit a four-year low. >>>
China's central ministries sent a stern message about the implementation of a key State Council document aimed at tackling excess industrial capacity.
The ministries underscored the increasing urgency of containing the risks of the longstanding issue. >>>
China issues guideline to cut overcapacity
China's State Council, the country's cabinet, has issued a guideline to tackle production overcapacity, according to a statement on the government's website.
The guideline mainly targets five sectors suffering from serious overcapacity, including steel, cement, electrolytic aluminium, sheet glass and shipping. >>>
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China faces worsening overcapacity
China's latest figures on industrial activities indicated that the world's second largest economy faced worsening overcapacity despite a slew of measures and repeated warnings from the leadership. Analysts said overcapacity was posing a big, if not the biggest, threat to China's future development, and there was no quick fix. >>> |
Decisive market tackles overcapacity Giving prominence to the market will help tackle industrial overcapacity and transform the current growth model, experts said. Tuesday's communique after the Third Plenary Session of the 18th Communist Party of China (CPC) Central Committee stressed profound economic reform, with the market to play the decisive role in allocation of resources and the government working harder. More reform in pricing of productive factors is expected, analysts said.>>> |
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The elimination of iron and steel overproduction has been a key part of a campaign the government launched in 2010 to promote its long-overdue industrial structural adjustment. That the government decides which steel enterprises will be retained and which are to be closed down shows that China still uses administrative means to decide the fate of its steel enterprises. But what are the effects of this? >>> |
Link overcapacity with performance: Experts
A think tank has suggested that the removal of industrial production overcapacity be used as one of the key criteria to evaluate local government officials' performance as the country steps up efforts to address the lingering problem.>>> |
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