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    Elimination Of Backward Production Capacity Needs To Improve The Exit Mechanism

    2010/8/16 16:34:00 26

    Capacity Withdrawal Mechanism

    Recently, the Ministry of industry and information has announced 18 industrial enterprises to eliminate backward production capacity list, including 2087 enterprises. The backward production capacity of these enterprises must be closed by the end of September this year.

    Li Yizhong, Minister of the Ministry of industry and commerce, said that in accordance with the requirements of the relevant documents of the State Council, the enterprises that have not eliminated the backward production capacity within the specified time limit shall revoke the discharge permit, and the banking financial institutions shall not provide any form of additional credit support. The investment management department shall not approve and approve the new investment projects, and the land and resources management department shall not approve the new land use, and the relevant administrative departments shall not handle the production license, and the production license and the production safety permit shall be withdrawn according to law.


    along with

    industrialization

    With the progress of the process, China's economy has made rapid progress, but in this process, it has also accumulated a large scale of backward production capacity.

    After entering the twenty-first Century, China actively eliminated backward production capacity. By the end of 2009, the country has eliminated 81 million 700 thousand tons of backward production capacity, 82 million 500 thousand tons of coke, 2.4 tons of cement and 6 million tons of paper.

    However, in steel, coke, cement and other industries, the proportion of backward production still accounts for 10%-25% of total output.

    And because China has always been carrying such a huge backward production capacity, our country

    Economic development

    It is difficult to further improve the quality and efficiency, and it is difficult to make great progress in economic structural pformation. At the same time, the huge backward production capacity has also increased to some extent the difficulty of achieving the target of accumulative total energy consumption per unit of GDP in China during the "11th Five-Year" period of 20%.

    It should be said that strict control of new capacity and elimination of backward production capacity can not be confined to the development of an industry itself, but to rise to the height of energy saving and emission reduction and economic restructuring to understand the seriousness and urgency of this problem, we must finish the elimination of backward production capacity as soon as possible.


    There is no doubt that this time, the Ministry of industry and Commerce eliminated backward production capacity policy.

    Executive power

    This is also consistent with what Premier Wen said in May of this year, "we must adopt iron skills to eliminate backward production capacity". On the one hand, we should restrict the development, increase the cost of land and electricity, use administrative penalties, and even cut off the sources of funds and so on, so that the backward production capacity will be unprofitable and unable to survive, prompting enterprises to consciously and consciously eliminate backward production capacity.

    On the other hand, as steel, cement and other industries are the main source of tax revenue in many places, some local governments may open up one side for backward production capacity in order to raise taxes and ease the pressure of employment. This has also caused the phenomenon of "overcoming more surplus" in industries such as iron and steel nowadays. Therefore, eliminating backward production capacity should be linked to local government officials' performance appraisal, and implement a strict accountability system, so that local governments have pressure and motivation to push out the implementation of backward production capacity policies.


    At the same time, eliminating backward production capacity is a long-term and arduous task. We need to establish a perfect exit mechanism for backward production capacity. But for now, the mechanism in our country is still not perfect. No matter how the market demand is met after the capacity is eliminated, or the capital whereabouts from the backward production capacity, there is no good solution. If it is only configured by market, it may take a long time, and many problems may arise during the period. Moreover, such as local financial pressure and employment pressure can not be solved by the market.

    Therefore, the government should not only eliminate backward production capacity with "iron weapons", but also make great efforts to build a backward production capacity exit mechanism.

    We should increase investment in capital, speed up the research and development of new technologies, develop new industries, make new technology more competitive than backward production capacity, further reduce the threshold for private capital to enter various industries, and enable the funds pferred from backward production capacity to have better use. We should also let the whole society establish a sense of actively monitoring the elimination of backward production capacity, and promote the elimination of backward production capacity by the whole society, and promote the improvement of energy saving and emission reduction mechanisms.

    It is believed that with the joint efforts of all sectors of society, China's industry will be able to get rid of the extensive mode of development, and the road of sustainable development of our country will be better and better.

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