Structural adjustment and upgrading will reduce excess capacity

By | April 16, 2013

National Bureau of Statistics spokesman Sheng Yun said yesterday that overcapacity is one of the problems faced the Chinese economy and will be solved step by step with the accelerated pace of structural adjustment and upgrading of industries.

State Council Information Office held a press conference on April 15, the National Bureau of Statistics spokesman of Comprehensive Statistics Division Sheng Laiyun introduced the economy performance in the first quarter of 2013 and answered the reporters’ questions.

Regarding the problem of excess production capacity, Sheng LaiYun said, “excess capacity is mainly contributed by the production capacity surplus in the traditional industries which is only one of the economic problems faced by us. Irrational industrial structure is a long-term problem. Though we attached great importance to the issue, but prominent problem of excess production capacity still exist because guiding mechanism had not been working well.”

Sheng Yun said, the past few years, governments at all levels attached great importance to this issue by speeding up structural upgrading, structural adjustment, in particular through accelerating the development of emerging industries. Chinese government issued related documents, such as the Report on the Work of the Government, the Central Economic Work Conference regarding how to solve the problem of overcapacity. Suggestions include removing some (outdated business), upgrading some (business) and transfer some (business to other areas) to create comparative advantage. “By these means, I believe that the problem of excess production capacity in China, with the accelerated pace of structural adjustment and upgrading will be solved step by step. ”

Reference Link:

http://www.china.com.cn/

http://finance.qq.com/a/20130415/003975.htm

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