The Industrial Economy Is On The Rise, &Nbsp, And The Overcapacity Is Still Serious.

The Ministry of industry and information technology released the spring report of China's industrial economic operation in 2010 18 days ago. The report showed that China's industrial economy showed a good trend of recovery. However, the current industrial economic operation still faces six difficulties, and the problem of excess capacity in many industries is still serious.

Data show that the growth rate of industrial production above Designated Size dropped from 16% in June 2008 to 3.8% in 2009, and then rebounded. In March, the growth rate reached 8.3%, November and December reached 19.2% and 18.5%, respectively, and the growth rate in November 1-2 was as high as 20.7% in the month of June.

Zhu Hongren, chief engineer and spokesman of the Ministry of industry and commerce, said that although many industries were showing a good trend of production growth and recovery, the industrial economy still faced six difficulties.
  
First of all, the foundation of economic growth is still not solid. Second, there are serious problems of redundant construction and overcapacity in some industries. Third, the contradiction between irrational industrial layout is still outstanding, and the pressure on eliminating backward production capacity is relatively large. Fourth, the industrial foundation and supporting parts of emerging industries are still weak. Fifth, the recovery process of the world economy will be tortuous and lengthy. Sixth, the overall business situation of enterprises is still extensive, and there is a need for transformation and upgrading as soon as possible. In addition to the six major difficulties mentioned above, there are also more constraints on resources and environment, increasing pressure on energy saving and emission reduction, and structural labor difficulties.

According to the relevant data, by the end of 2009, the production capacity of some important industrial products in China has reached a fairly high level, and the share of some important industrial products in the world market has reached 30%-50% level, but the problem of excess capacity is serious. Xin Guobin, director of the monitoring and Coordination Bureau of the Ministry of industry and commerce, said that at present, the overcapacity of raw materials, ships and textile industry is particularly prominent.

In terms of raw material industry, in 2009, China's steel production capacity had exceeded 7 billion tons, of which about 30 million tons entered the social inventory, the actual consumption was less than 5.3 million tons, the capacity was still expanding blindly, and the fixed investment growth rate of the steel industry remained at about 20% in 2009. The fixed assets investment in nonferrous metals industry increased by 16.5% over the previous year. Some enterprises blindly pursue scale effect and expand scale impulse. The capacity of electrolytic aluminum has expanded from 18 million tons in 2008 to 20 million tons, and about 2000000 tons are being built. Cement production capacity has reached 19.6 billion tons, while cement production lines under construction exceed 400, new capacity will exceed 6 billion tons, flat glass production capacity has reached 6.4 billion tons, and many places and enterprises are still keen on projects and expanding scale. The added value of the oil and chemical industry over the scale increased by 10.1% over the previous year, and the capacity of some industries was seriously surplus. At present, the utilization rate of calcium carbide in China is only 68%, and coke production capacity is nearly 100 million tons; methanol production capacity is more than half idle. According to statistics from industry associations, the capacity of calcium carbide, coke and methanol in construction is about 7 million tons, 30 million tons and 8 million 600 thousand tons respectively. In addition, some inorganic salts, inorganic bases, fertilizers, pesticides and so on also have varying degrees of overcapacity.

The problem of overcapacity caused by repetitive construction in shipbuilding industry has emerged. At present, China's shipbuilding capacity has reached 66 million deadweight tons. In 2009, more than half of the enterprises did not receive orders. The contradiction between structural overcapacity is also very prominent. Most enterprises mainly produce conventional ship types such as bulk carriers, container ships and oil tankers. The production capacity of high technology and high added value ships is insufficient (less than 10% of the world market share). Offshore engineering equipment design, assembly technology and core supporting equipment still rely mainly on foreign countries.

The capacity of the textile industry to control production capacity is also very arduous. China's fiber processing capacity is nearly 50% of the total global processing capacity. In recent years, capacity expansion has been rapid. The tendency of low-level duplication construction and high quality homogenization development is obvious.

Zhu Hong said: "the problem of excess capacity has been reflected, but there are still some places still keen to shop and project, which should be highly valued in these areas. Article 38 of the State Council has put forward important guiding opinions for stopping the blind expansion of the capacity of some industries, restraining the rapid growth of overcapacity and promoting the healthy development of the industry.