Abstract At the beginning of the new year, senior leaders have voiced their efforts to resolve overcapacity. During the inspection of Shanxi, Premier Li Keqiang issued a prescription for the current overcapacity problem. He stressed that to resolve excess capacity, we must give full play to the role of the market to force the mechanism, and we can solve it by market methods...
At the beginning of the new year, senior leaders have voiced their efforts to resolve overcapacity. During the inspection of Shanxi, Premier Li Keqiang issued a prescription for the current overcapacity problem. He stressed that to resolve the excess capacity, it is necessary to give full play to the role of the market's reluctance mechanism. If it can be solved by the market approach, it must be solved by the market approach. Specifically, how to resolve excess capacity, Li Keqiang clearly proposed to do a good job of three tasks, including strict control of incremental, active reduction, and optimization of stocks. While emphasizing the market-oriented approach, Li Keqiang also proposed to solve the three key issues of “moneyâ€, “debt†and “people†in the process of de-capacity.
The reporter learned that the major ministries and commissions such as the National Development and Reform Commission and the Ministry of Industry and Information Technology have launched a number of investigations and deployments on the problem of overcapacity resolution. It is expected that relevant policies will be introduced in the near future.
Three dimensions to capacity
Li Keqiang pointed out that the two industries with the most outstanding overcapacity are steel and coal. The surplus of these industries is no longer a problem of the industry cycle. Under the pressure of the new situation, we must base ourselves on the whole market, and we will never engage in stimulus and flood irrigation. We must use "hard measures" to resolve overcapacity.
In terms of strict control increments, Li Keqiang stressed that to resolve excess capacity, first of all, it is impossible to build new production, especially in the name of technological transformation. The Prime Minister said, "We must further strengthen our efforts, conscientiously demonstrate and reasonably determine the goal of resolving excess capacity in the steel and coal industries in the next three years. According to market demand, we will set the national total 'ceiling' of steel and coal. In principle, we will stop approving new coal mines. New capacity technological transformation and coal mine production capacity increase project."
He ordered the relevant departments to use the monitoring of remote sensing satellite data to strictly investigate the expansion of production capacity in various places. “Since the country has stopped filing steel projects with new capacity since 2013, it is necessary to strengthen supervision and implementation and strictly accountability.â€
In addition, for the existing production capacity, Li Keqiang requested the implementation of “reduction and replacementâ€. If the environmental protection, energy consumption and safety production fail to meet the standards and the production is unqualified or the steel production capacity is eliminated, it must be shut down according to the rules and regulations. In the process, it is necessary to dispose of a group of zombie enterprises and loss-making enterprises that have lost hope.
Finally, Li Keqiang also stressed that to optimize the stock capacity, enterprises should reduce the “quantity†in the process of resolving the excess capacity, put the “quality†up, promote the upgrading of enterprise products, and accelerate the transformation to high-end, intelligent and green.
It is worth noting that while emphasizing the role of mobilizing and giving play to enterprises, Li Keqiang also pointed out that the government must do its own work.
The Prime Minister said that on the one hand, it will promote from the overall deployment, resolutely eliminate backward production capacity and digest some of the excess capacity; on the other hand, it must solve the problems of required funds, personnel resettlement and debt handling, and help enterprises to turn losses into gains in the adjustment structure. And embark on a new road of development to promote smooth economic operation.
"Resolving overcapacity is a complicated system project, which requires both the symptoms and the root causes, and multiple measures." Zhang Junwei, a researcher at the Macroeconomic Research Department of the Development Research Center of the State Council, said that behind the overcapacity, there is a shadow of strong government intervention. Similarly, overcapacity is also resolved. Can not do without the positive actions of the government.
Focus on solving three problems
"To resolve excess capacity, we must adhere to 'the market is forced, the main body of the enterprise, the local organization, the central support, and the comprehensive policy'." Li Keqiang said. While deploying three tasks, he also emphasized that the three key issues of “moneyâ€, “debt†and “people†should be highlighted in the process of de-capacity.
Specifically, Li Keqiang proposed four measures. First of all, we must increase fiscal and tax support, properly solve the social functions of enterprises and historical issues; second, we must strengthen financial support, use market-based methods to timely dispose of corporate debt and non-performing assets, and prevent financial risks; once again, we must properly resettle employees and The bottom line of people's livelihood guarantees the legitimate rights and interests of employees; finally, it is necessary to strengthen supervision and evaluation, withdraw the backward production capacity into the local assessment index system, strengthen social supervision, and prevent the overcapacity of cleaned up and canceled.
In the process of deploying policies, Li Keqiang strongly emphasized the use of market methods and coordination among policies. He said that in the process of resolving excess capacity, the central government will support it, and the local government will bear the overall responsibility, but the most important thing is to fully follow the market rules and give play to the main role of the enterprise.
Recently, after the investigation by the Central Committee of the People's Republic of China, the proposal of the central government to resolve the excess capacity has first mentioned the establishment of a fair, unified and freely competitive market, the elimination of various differential policies across the country, and the determination of factor prices in the market for various ownership enterprises. And various industries enjoy fair policy treatment.
Steccawood Rectangle,Steccawood Curved Joinery,Half Round Steccawood Around,Prefinished Decorative Battens Create
PRO CABINET SOLUTION PTY LTD , https://www.pcscabinet.com.au