On the morning of the 22nd, during a press conference hosted by the State Council Information Office, it was revealed that the State Council issued two key policy documents on December 7: the "Decision on Issuing the Interim Provisions for Promoting Industrial Structure Adjustment" and the "Guiding Catalogue for Industrial Structure Adjustment." These policies aim to regulate and restrict industries with overcapacity—such as coking, calcium carbide, and others—using economic, legal, and administrative measures. Additionally, they call for the strict elimination of outdated production facilities, including small-scale oil refining, coking, small sulfuric acid plants, and tire manufacturing lines.
The new guidelines categorize industries into three groups: those that are encouraged, restricted, and eliminated. Among the encouraged sectors are 27 chemical industries focused on resource efficiency and environmental protection, such as nitrogen fertilizers, specialty chemicals, membrane materials, fluorinated products, composite materials, and alcohol-ether fuels. On the other hand, several outdated petrochemical and chemical projects have been placed in the elimination category, including diesel production units with a capacity of 1 million tons per year, sulfuric acid plants producing less than 44,000 tons annually, tire production lines using natural cotton cord fabric with an output of under 500,000 units per year, yellow phosphorus plants below 1,000 tons per year, earth refining, mercury-based caustic soda plants, graphite anode membrane caustic soda facilities, calcium carbide furnaces with a capacity below 5,000 kVA (or 10,000 tons per year), and open-type calcium carbide furnaces, as well as soil coking operations.
According to recent reports, since the start of this year, the National Development and Reform Commission has been actively addressing overcapacity issues in nine key industries. It noted that ferroalloy, coking, calcium carbide, automobile, and copper smelting sectors face significant overcapacity challenges. For example, the coking industry has a total capacity exceeding 100 million tons, with an additional 30 million tons under construction or planned. The calcium carbide sector has a capacity of 16 million tons, but about half of it remains unused. All these overcapacity industries have been classified as restricted under national policy.
Industrial restructuring, focusing on curbing and guiding these overcapacity sectors, is now a top priority for China’s economic development in the near future. The new policies strictly prohibit investment in projects listed in the phase-out category. Illegal enterprises will be ordered to halt operations or shut down according to laws and regulations. Local governments and relevant departments must enforce these measures. The industrial and commercial authorities will urge companies to update their registration or cancel it, while environmental agencies will revoke their pollution discharge permits. Power companies are also required to cut off electricity supply to non-compliant facilities. Those who violate the rules will be held accountable, including the responsible individuals and leaders.
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