Promoting domestic demand

Abstract: In the automobile, steel and other ten industrial adjustment and revitalization of the plan launched about a year later, the decision makers want to add force. Yesterday, Premier Wen Jiabao presided over a State council executive meeting to further implement key industry adjustments and

In the automotive, steel and other ten industrial adjustment and revitalization of the plan launched about a year later, the decision makers want to add force.

Yesterday, Premier Wen Jiabao presided over a State council executive meeting to study the deployment and further implement key industry adjustment and revitalization plans. "The results achieved at present are only preliminary and phased." The meeting was made.

The State Council has six solutions, including a foothold in expanding domestic demand and optimizing industrial distribution. Specific measures include the continued implementation of home appliances to the countryside and the car, home appliances to replace the new policy, promote electronic information, light industry, textile and other industries to accelerate the transfer of the Midwest, resolutely control iron and steel, cement, electrolytic aluminum, coke, calcium carbide and other industries such as total capacity. The

problem still stands out.

"The Top ten industrial adjustment and revitalization planning and implementation achieved remarkable results, the economic operation gradually rebounded to good." "January 28, the Ministry of Industry and Information Technology (hereinafter referred to as" the ministry ") in conjunction with the State Council laboratory, in Wuhan, held the top ten industrial adjustment and revitalization Planning Symposium, the Ministry of Industry group member Lihua said.


This is particularly evident in the automotive industry. Last year, China-made auto production and sales of more than 13 million vehicles, an increase of more than 46% per cent, and overtook Japan as the world's largest auto producer, overtaking the United States as the world's largest new car market.

However, while the results are outstanding, some of the problems that can be solved by crisis are not well resolved. "For example, non-ferrous metals industry, especially the electrolytic aluminum industry, there is a serious excess capacity, now still unresolved." "China Aluminum Company (hereinafter referred to as" Chinalco ") a senior to the" first financial daily "said.

In fact, the electrolytic aluminum industry overcapacity is not only not well resolved, but there is a further upward trend.

The non-ferrous metal adjustment and revitalization plan has suggested that as of the end of 2008, electrolytic aluminum capacity has been built and under construction capacity of more than 18 million tons, the year consumption of 12.6 million tons, overcapacity.

But according to the latest data from the Ministry of Information, electrolytic aluminum production capacity has reached about 20 million tons, exceeding the demand of about 7 million tons. Last year, China produced 12.99 million tonnes of electrolytic aluminum, an increase of 1%.

Before the top ten revitalization plans were put forward, the country's macro-adjustment had actually been a solution to the problem of overcapacity, and the economic crisis had further forced the country to solve the problem. Chinalco said, "but the country has not solved the problem in order to guarantee growth, protect employment and stabilize the economy." "

Central policymakers have clearly taken note of the problems behind these economic growth. At the Central Economic Work Conference held last December, the State Council put the "structural adjustment" to a more prominent position.

Promote domestic demand, led by

overcapacity is just one of many problems. Too much reliance on exports, mergers and acquisitions, and technical transformation of special funds small size and other issues also restrict the healthy development of China's economy.

In the six initiatives, the State Council will be based on expanding domestic demand, consolidating key industries to stabilize the rebound in the first place. In order to expand domestic demand, the relevant industry revitalization planning of the original proposed incentives will continue to receive state support.

The State Council yesterday stressed that to continue the implementation of home appliances to the countryside and cars, home appliances to replace the new policy, expand the scope of subsidized products, support new energy vehicles demonstration promotion.

In order to better expand domestic demand, optimizing the industrial layout is listed by the State Council as the second place in the measure. The State Council stressed that strict market access, strengthen investment management, do a good job of orderly transfer. Construction of advanced manufacturing base and modern industrial cluster. Promote the electronic information, light industry, textile and other industries to accelerate the transfer to the Midwest region.

While the third measure of compression and diversion of excess capacity, it helps to optimize the industrial layout. Overcapacity of the main industries are steel, cement, electrolytic aluminum, coke, calcium carbide and so on. "The iron and steel industry will mainly carry out strategic layout in the future. "China Iron and Steel Industry association consultant Wu Chun told this newspaper.

Overcapacity is largely the result of a low concentration of industry. The steel industry, for example, has been under threat from international iron ore giants in recent years because of the sheer volume of domestic steel companies. Although the State Council in the fourth initiative put forward efforts to promote corporate mergers and acquisitions, improve industrial concentration and competitiveness of enterprises, "but constraints on the promotion of Merger and reorganization of the policy issues have not been resolved." Bingsheng, vice president of China Iron and steel Industry Association, told this newspaper.

The State Department concludes by emphasizing that technical improvements in key areas and important links will be strengthened, and that institutions and mechanisms to promote structural adjustment and change the way of development should be further developed.