China continues phasing out backward capacity

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Government wants accelerated program to boost economy, create more efficient industries.

Chinas government is looking to accelerate initiatives to completely eliminate backward capacities in key industrial sector, a report from Digital Cement said.

In an executive meeting, the countrys State Council has moved to study the fast tracking of programs to phase out backward capacity, strengthen strict market access policies, and opt for a price reform structure to improve business and help suppress high consumption and emission caused by an over active manufacturing sector.

In a statement, the Council said the proliferation "of energy-saving and environmental protection standards, increased trade access barriers, strengthening of cleaner production audit, the implementation of differential pricing, the establishment of a mechanism for withdrawal and other supporting policies in order to promote the traditional coal chemical industry, eliminate backward production capacities," was of primary concern at the moment.

Building materials, light industry, textile and other industries related to the access threshold ten are introduced in the forthcoming or have been developed.

For example, the recent letter to the Ministry of National Development and Reform Commission and the Public jointly cement, plate glass to clean up the project and issued the "Interim Measures on Management of flat glass industry, access to bulletin." Furthermore, the iron and steel industry, the Department issued a public letter to "existing iron and steel enterprise production and operation of access and management methods" draft, and "speed up the iron and steel enterprise consolidation and reorganization guidance" also entered the final phase.

"For the integration of coal resources, the elimination of backward small coal technology, more resources such as from Shanxi province started, and this year will undoubtedly further in-depth." Coal Transportation and Marketing Association, Dr. Liang Duishi Deputy Secretary-General told reporters.

Should be noted that, except to improve business access threshold, the integrated use of differential pricing, land gates and other economic, technical means, necessarily speed up the production capacity of Chinas backward elimination step.