Make me your Homepage
    left corner left corner
    China Daily Website

    China exploring ways to ease overcapacity

    Updated: 2013-09-18 21:30
    ( Xinhua)

    BEIJING - China has this week ordered 58 companies, ranging from steel, coke and cement producers, to cut excess production capacity by the end of the year, in the latest attempt to ease overcapacity in bloated sectors.

    This is the third batch of enterprises required by the Ministry of Industry and Information Technology to cut overcapacity by the end of 2013, following more than 1,400 companies in July and another 67 earlier this month.

    The orders came as China struggles 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.

    The average utilization rate in oversupplied sectors such as steel is below 75 percent, far lower than the international average, and around 22 percent of production capacity in China's major industrial companies sat idle in the first half of the year.

    "China's over-reliance on investment and foreign trade has fueled rapid growth in some sectors, and when global demand slides and domestic production cost rises, overcapacity inevitably surfaces and cannot be easily addressed," noted Zhang Yansheng, secretary general of the Academic Committee of the National Development and Reform Commission, China's top economic planner.

    Chinese solar panel maker Suntech Power Holdings Co., Ltd, which in 2011 was the world's biggest seller of silicon-based photovoltaic modules and hailed by New York Times in 2009 as "the Sputnik of our day," was forced into bankruptcy by a worldwide production glut and heavy debt in May.

    Against the backdrop of a slowing economy, China's new leadership has been at pains to balance production. Premier Li Keqiang has on many occasions vowed to curb blind expansion and improve capital efficiency, along with energy and resource use to restructure the economy.

    More policies are in the pipeline. A plan to systematically address the issue is in the making.

    According to Zheng Xinli, executive deputy director of China Center for International Economic Exchanges, the government is looking to boost domestic demand, encourage producers to go global, push mergers and acquisitions, as well as setting higher environment threshold to reduce overcapacity.

    Even though the central government has been pushing for the elimination and closure of outdated capacity, analysts warn that the move will meet resistance from GDP-oriented local governments accustomed to chasing jobs and economic growth by investing in the often high-cost, low-tech capacities.

    "The administrative orders are short-term cures, the key to a balanced economy is to allow the market play a larger role," urged Gary Liu, executive director of CEIBS Lujiazui Institute of International Finance in Shanghai.

    In the absence of robust overseas demand, China needs to reform its income distribution system to absorb overcapacity, and make production costs more market-oriented, Liu suggested.

    "Real demand and supply can guide resource distribution, and the job of the government is to eliminate policies that disturb market order and remove improper protection and subsidies," he said, adding he expects more detailed reform plans at the upcoming Third Plenary Session of the 18th Communist Party of China Central Committee in November.

    8.03K
     
    ...
    ...
    ...
    无码人妻品一区二区三区精99| www无码乱伦| 亚洲AV无码不卡在线观看下载 | 国产亚洲精品a在线无码| 亚洲天堂中文字幕| 国产V亚洲V天堂无码久久久| 欧洲精品无码一区二区三区在线播放| 国产在线精品一区二区中文| 亚洲av无码乱码在线观看野外| 久久人妻少妇嫩草AV无码专区| 合区精品中文字幕| 精品久久久久久无码中文字幕一区| 免费无码国产在线观国内自拍中文字幕| 在线播放无码后入内射少妇| 日本高清免费中文在线看| 日本中文字幕在线不卡高清| 国产 日韩 中文字幕 制服| 手机在线观看?v无码片| 91精品日韩人妻无码久久不卡| 日韩精品无码久久久久久| 无码人妻品一区二区三区精99| 亚洲AV无码专区国产乱码电影| 伊人久久综合精品无码AV专区| 中文字幕日本精品一区二区三区| 中文字幕在线免费观看| 中文字幕精品一区影音先锋| 亚洲激情中文字幕| 最近2019年中文字幕一页| 中文字幕在线资源| 最近2019好看的中文字幕| 亚洲国产日韩欧美在线a乱码日本中文字幕高清 | 亚洲中文字幕在线第六区| 日韩成人无码中文字幕| 中文亚洲欧美日韩无线码| 国产中文在线观看| 中文字幕日韩一区二区三区不卡| 最近中文字幕mv免费高清在线 | 国产成人无码AV一区二区 | 国产精品无码午夜福利| 91精品久久久久久无码 | 国产一区三区二区中文在线|