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MIIT proposed measures to promote more backward production capacity out

Ministry today "on the use of law to promote the comprehensive standard backward production capacity exit guidance (draft) in accordance with regulations" to the public for comments. "Draft" should be made through a number of measures to increase financial support to implement the pricing policy, the implementation of differential credit, energy consumption, environmental protection, production safety, not up to standard or substandard products and production capacity out of class, according to the law orderly exit.
"The draft" proposed in recent years, eliminate backward production capacity to work on the basis of iron and China Galvanized Corrugated Roof Sheet, coal, cement, electrolytic aluminum, plate glass and other industries, improve the comprehensive standard system by tightening the normalization of law enforcement and the implementation of mandatory standards, promote the establishment of the rule of law, market-oriented production capacity exit mechanism by 2020 and then quit batch production capacity, excess capacity problems were alleviated, continuous optimization and upgrading of industrial structure.
"Draft" clear, strict implementation of relevant laws and regulations and mandatory standards for energy consumption, environmental protection, production safety, not up to standard or substandard products and production capacity out of class, according to the law in accordance with regulations orderly exit.
- Energy consumption. Strict implementation of the energy conservation law, on the production capacity of less than mandatory energy consumption limits required rectification shall within six months; rectification period needs to be extended, you can apply for an extension of not more than three months; overdue correction or through rectification not yet standard, according to the law closed down exit.
- Environmental protection. Strict implementation of the Environmental Protection Act, fail to meet standards or pollutant emissions over the air, water, solid waste and other sewage capacity, the implementation of continuous daily punishment; serious cases, reported to have the right of approval of People's Government shall be ordered closed, closed.
- Quality. Strict enforcement of product quality law, the relevant product quality up to the capacity of less than mandatory standards, prosecute and ordered to suspend production for rectification; rectification or after rectification still not in compliance within six months, according to the law closed down exit.
- Security. Strict implementation of the Production Safety Law, does not meet the three enterprises safety standardization and safety conditions reach the relevant mandatory standards of production capacity, immediately stop production for rectification; rectification not within six months or after rectification not yet standard, according to the law closed down exit.
Policy measures, "the draft" requirements of iron and steel, cement, electrolytic aluminum and other industries energy consumption, electricity consumption amounted to less than the mandatory standard capacity, the implementation of differential pricing, the price ladder, punitive tariffs and ultra-scale water and other progressive increase energy resource prices.
"Draft" clear, have to maintain control of the implementation of financial policies to resolve excess capacity, the implementation of mergers and acquisitions as well as promising, cost-effective enterprise, according to risk control, the principles of sustainable business, increase credit support. Fails to quit on production capacity of enterprises, strictly control new credit, Yajian stock of loans, and urge enterprises to withdraw from financing capacity as soon as possible. Using market means to properly dispose of corporate debt and non-performing assets of banks.
"Draft" stressed the need to placement of workers as a top priority to capacity to work, to guide enterprises to implement the main responsibility, according to the law and properly handle labor relations, making a good employee relocation programs and risk management plans. Employment subsidies play a role, carry out their own businesses, and helping to encourage enterprises to absorb employment difficulties in seeking employment and other policies, good social security relationship continue and metastasis, according to the provisions and implement social security benefits. Strengthening employment and skills training to enhance the ability to re-employment of laid-off workers.

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