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China moves to address overcapacity in emerging sectors

(Xinhua)
Updated: 2009-08-27 10:54

China's State Council, the Cabinet, warned Wednesday of overcapacity in emerging sectors such as wind power, saying the country would move to "guide" development troubled by overcapacity and redundant projects.

Overcapacity has persisted in the steel and cement sectors, while redundant projects have surfaced in the emerging sectors of wind power and polysilicon, said a statement issued after an executive meeting of the State Council, presided over by Premier Wen Jiabao.

"Overcapacity and redundant projects remain prominent because of slow progress in industrial restructuring in some of these sectors," the statement said.

"Guidance" would be particularly enhanced on the development of steel, cement, plate glass, coal chemical, poly silicon, and wind power sectors, it said.

The guidance would include strict controls on market access, reinforced environmental supervision, and tougher controls over land use.

Related readings:  China to rein in cement overcapacity  Watchdog plans to deal with overcapacity  Nation stresses adjustment of sectors with overcapacity  Industries dealing with overcapacity

Banks were ordered to lend money for these sectors in strict accordance with present industrial policies.

Relevant government agencies would also strengthen monitoring over industrial capacity in these sectors, and jointly release information on topics such as the current scale of operations, public demand, and government industrial policies, said the statement.