The new regulations will target surplus industries such as steel and shipbuilding
China is about to release a new plan to reduce the production capacity of steel, shipbuilding and other industries. However, due to the loose supervision since the implementation of the economic stimulus plan, the implementation of the measures will be a difficult task
the following functions and features will be released in a few weeks: the new regulations of cloth will also target electrolytic aluminum, cement, glass manufacturing and other industries. Although demand has recovered, these industries are trapped in overcapacity. If it cannot be controlled, the already weak market will encounter greater pressure
the new Chinese government is trying to adjust the structure of key economic sectors. However, insiders believe that it is extremely difficult to solve this problem. Beijing has been trying to solve the problem of overcapacity in the industry, but local governments have often met with deputies to the National People's Congress for the purpose of protecting economic growth and increasing income: the construction of a petrochemical free trade pilot zone in western Guangdong and the national petrochemical base system. Beijing has asked local governments to take measures against "blind expansion" and close illegal projects. However, analysts said that China should be wary of the resulting job losses, such as Hebei Province around Beijing. Henri Liu, an analyst at future asset securities, said, "there are many heavy industrial projects in Hebei, such as steel, cement, glass manufacturing, etc. if Hebei has economic problems, workers may flee to Beijing."
analysts said that what is needed is not new policies, but better implementation. Although Beijing issued a decree requiring local governments to close factories, promote mergers and acquisitions and supervise. But industries such as steel and aluminum have been on the edge of the law. Even some large private steel companies have not been authorized to produce 4-ball friction and wear testing machines. It is relatively easy to control large-scale projects by encouraging state-owned enterprises to reduce production capacity, but it is difficult to curb small-scale private enterprises. Even the real capacity is difficult to estimate, and the reduction is even more difficult to predict. Hebei Province said it would reduce its steel production capacity by 60million tons in 2020, but it was estimated that the province's total steel production capacity was between 300 million tons and 400 million tons. Experts said that in fact, 5. Stretching space: 550mm. At present, no one knows the exact steel production capacity of Hebei
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