Development and Reform Commission: Guidance Catalogue for Industrial Structure Adjustment Will Be Issued

As for the current overcapacity and redundant construction in some industries, Xiong Bilin, inspector of the Industry Coordination Department of the National Development and Reform Commission, said yesterday that the National Development and Reform Commission is hurrying to formulate the “Guidance Catalogue for Industrial Structure Adjustment” and will issue it as soon as possible within the shortest possible time.
Xiong Bilin was revealed at a press conference held yesterday to curb the overcapacity and redundant construction in some industries and guide the healthy development of the industry. This conference is a notice issued by the National Development and Reform Commission and the nine departments that “the State Council has approved the development and reform commissions and other departments to suppress some industries’ overcapacity and repeated construction to guide the healthy development of the industry” (hereinafter referred to as the “Notice”), requesting the establishment of information release. The first information disclosure after the system. He also stated that taking polysilicon as an example, China still does not have the conditions for exporting energy to foreign countries. Overcapacity and China's policy measures to deal with the financial crisis are not necessarily linked.
The "Notice" issued by the State Council a few days ago is formulating a "Guidance" for the adjustment of industrial structure. It has proposed nine measures and the measures have been clearly decomposed into various departments. “One of the sentences is to carry out their duties. For example, the Catalogue of Guidance for Industrial Structure Adjustment, the Department of Industrial Coordination of the National Development and Reform Commission is hurry to formulate, and in accordance with the requirements of time management, will be introduced as soon as possible in the shortest possible time.” Xiong Bilin explained.
He said that although the country is a market economy, there are still many areas that need to be further improved and improved in terms of many institutional mechanisms. In particular, some of the industry's access standards are constantly adjusted as technology progresses. These require some experts to check it out, but the proposed standards must be feasible and actionable. It takes time. However, some of them can be effective immediately. For example, some of the nine measures are being implemented immediately. Relatively speaking, these measures will definitely be introduced within the shortest time.
China does not have the conditions for exporting energy When it comes to the current state of the polysilicon industry, Xiong Bilin stressed that China’s own energy is in short supply and it does not have the conditions for exporting energy to foreign countries.
It is understood that 98% of the 20 million megawatts of solar wafers last year were exported directly or indirectly. From silicon to solar wafers, it is about 1 megawatt of consumption, nearly 2 million to 3 million kWh. "In a certain sense, sending 98% of the polysilicon wafers to foreign countries has a problem of exporting energy, which is related to the country's energy security. China's own energy is in short supply, so it is necessary to regulate and control in this regard and it needs to be established and improved. Domestic ability to digest solar wafers.” Xiong Bilin said.
The irrelevance of policies related to surplus and the financial crisis is a result of the policy of overcapacity in some industries due to the financial crisis. Xiong Bilin said that 4 trillion yuan of investment has played a very good role in the recovery of the Chinese economy, and excess capacity in some industries. It is already very clear that this surplus is not necessarily related to China’s policy measures to deal with the financial crisis.
"For example, before the steel crisis, the steel output of last year was 500 million tons. Actually, the production capacity is already 660 million tons, and there are also 58 million tons of projects under construction. This adds up to 700 million tons of production capacity. This production capacity is obviously a very obvious surplus, and this surplus is not necessarily related to the policy measures to deal with the financial crisis," said Xiong Bilin.
Under normal circumstances, the demand for steel accounts for 50% of construction steel. Because of the 4 trillion yuan's pulling, the railways, highways, infrastructure and some people's livelihood projects that are mainly concerned require large quantities of steel and cement, which makes the original steel demand structure from 50% to 60%. A partial demand for some products has grown faster.

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