China to curb excessive investment in steel, aluminum, cement

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Last updated at: (Beijing Time) Thursday, February 05, 2004

China to curb excessive investment in steel, aluminum, cement

Chinese Vice-Premier Zeng Peiyan called for concerted efforts to curb excessive investment in iron and steel, electrolytic aluminum and cement on Feb 4th.

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Chinese Vice-Premier Zeng Peiyan called for concerted efforts to curb excessive investment in iron and steel, electrolytic aluminum and cement on Feb 4th.

China has become the biggest producer of those products in the world, with improved technology and equipment, but production facilities planned or under construction in those sectors have outstripped market demand due to excessive investment, said he.

Addressing a telecast national conference, the vice-premier said China's production capacity in those sectors have outpaced forecast market demands, while the sectors themselves are characterized by irrational production mix, high input of raw materials, low yields and severe industrial pollution.

Chinese leaders issued a similar warning last year.

The vice-premier urged local governments to investigate investment projects in those sectors, and report the results to the central government, which is scheduled to dispatch task forcesin the near future to selected areas to make sure its policies are implemented.

Central government departments and agencies, including the Ministry of Land and Resources, the People's Bank of China (the country's central bank) and the State Environmental Protection Administration, have taken measures to dampen excessive investment in those sectors, Zeng said.

China will resort to economic, legal and administrative measures to regulate investment in those sectors, meanwhile cautioning government departments against interference in investors' business, the vice-premier added.

He ordered the government departments concerned to improve the country's industrial policies regarding those sectors, and establish a mechanism to publish market information on such products and an early warning system to reduce excessive investment.

Source: Xinhua News Agency

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