China's Industry and Information Technology Ministry (MIIT) on February 18 pledged tougher measures to cut overcapacity in bloated sectors as the problem has become a severe drag on economic growth.
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, Mao Weiming, Vice Minister of MIIT, said.
While placing stricter standards in environmental protection, energy efficiency and safety, China will also encourage mergers and acquisitions in industries to slash outdated capacities, Mao said.
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. |