In Januaray, the senior leaders, Li Keqiang has stressed that, under the current overcapacity prescriptions in China, the government will forced to give full play role to the market mechanism. The government will takeing advantage of the market oriented approach to resolve the overcapacity in the Chinese Steel Industry. Specifically, Li Keqiang clearly summarized into three tasks. Including strict control of incremental, proactive reduction, inventory optimization. Besides, Li Keqiang also proposed to highlight production process to solve the "money", "debt", "people" these three key issues. The news reporters has learned that the National Development and Reform Commission, the Ministry and other major ministries have excess capacity on a number of issues to resolve research and deployment policies are expected to be introduced soon.
Li pointed out that the current overcapacity in the two most prominent industry, one steel, one coal. Surplus in these industries has not the industry cycle issues. In the new situation, the government should take " hard measures" to resove the overcapacity. In order to strictly control the incremental, Li Keqiang has stressed that first of all new production has to stopped. Especially, it will not be acceptable to exapnd production capacity under the name of technological innovation.
Finally, Li Keqiang also stressed the need to optimize inventory production capacity, companies want to resolve the overcapacity in the process of the "quantity" cut down, the "quality" to go up, and promote product upgrading, speed up to high-end, smart, green aspects of the transition converting.info@primesteeltube.com
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