China restructures 9 key industries

The nine key industries, which includes: autos, steel-making, cement, ship building, electrolytic aluminium, rare earth and information technology.

These sectors will now be reshaped and developed according to their own development strategies. Overcapacity has long been an issue for many of China’s heavy industries. According to a survey last year, the overcapacity rate came in at 12-percent for autos, 21 percent in the steel sector, 28 percent for cement, and a staggering 35-percent in the aluminium industry.

China’s Ministry of Industry and Information Technology also announced today that it would encourage big state firms to acquire smaller rivals in the nine industries in order to cut excess capacity.

The ministry hopes larger state firms would consolidate 90 percent of automobile and aluminium production under the top 10 firms in each respective sector by the end of 2015.

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