AsiaNews Magazine Jan10-16,2014 ( Jan 1-7,2014) | Page 27

BUSINESS

January 10-16, 2014

Instead, it will include
reducing overcapacity among
criteria for evaluating the work
of local officials, the State
Council announced in 2014.
Balancing environmental
carrying capacity, market
demand and resource supply
within five years is the goal.
Last October, the government
announced guidance for
reducing overcapacity in five
industries—namely, steel,
cement, electrolytic aluminum,
sheet glass and shipbuilding.
It was the first time that the
State Council, the country's
cabinet, published a report
of this kind to deal with the
overcapacity problem.
The Ministry of Industry
and Information Technology
is requiring 19 industries
comprising 1,569 companies
to cut production capacity.
The companies must shut
down part of their production
lines by the end of the year.

The China Banking Regulatory
Commission said in November
it is prohibiting any type of
credit support to new projects
in industries with a severe
overcapacity proble