The State Commission of Development and Reform, under the collaboration with other departments concerned, has worked out A Catalogue for Curbing Low-level Repeated Construction in Industries. Projects from 10 sectors included in this catalogue will be stopped or restricted. No new credit will be extended by financial institutions to any of these items.

Specifically, number of categories in the 10 sectors under strict control is as follows:

---31 items under prohibition and 12 under restriction for steel and iron industry;

---15 under prohibition and 11 under restriction for non-ferrous metal industry;

---33 under prohibition and 11 under restriction for building materials;

---45 under prohibition and 34 under restriction for petroleum and chemical industry;

---87 under prohibition and 46 under restriction for machinery industry;

---21 under prohibition and 31 under restriction for light industry;

---28 under prohibition and 1 under restriction for textiles;

---9 under prohibition and 7 under restriction for pharmaceuticals;

---62 under prohibition for printing;

---28 under prohibition and 22 under restriction for other sectors.

A notice was issued at the same time on stepping up coordination between industrial policies and credit policies to control credit risks. The notice stipulates that construction of items under the categories of prohibition, of which production capabilities, techniques or products are ordered to be eliminated, be stopped. Projects in this category, if completed, should be shut down. Financial institutions are supposed to suspend any new credit to such projects and recover credit which has already been granted with proper measures.

For projects under categories of restriction, administrations responsible for investment at all levels should immediately halt approval of such projects and stop construction of those planned. These administrations are also responsible for rectifying and carefully handling those for which construction has begun but should be suspended. During the period of rectifying, no new credit should be granted to projects involved by financial institutions.

Categories under prohibition include those which imperil production safety, produce severe environmental pollution, have quality not up to the national standards, consume raw materials and energy heavily or are forbidden by the national laws and regulations.

Categories under restriction are featured with over production capacity, no contribution to industrial structure upgrading, backward techniques replaced by advanced and mature ones, not in favor of resources saving and environmental protection. Some are restricted in line with laws and regulations.

An official from State Commission of Development and Reform said in an interview that some credits have been found to flow to fields with low level replicated construction in the macro-economic operation and this derailed from the orientation of the industrial policies. This situation, he declared, asks for adjustment of credit policies in a appropriate way at an appropriate time according to the industrial development and needs of the macro-control so that a coordination system for industrial and credit policies would be in place to play a comprehensive role.

Given the excessive investment, rampant low-level replicated construction and fast growth of credit, the Catalogue, along with the Notice, identifies the fields where low-level replicated construction takes place, as well as backward techniques, equipments, and products which should be phased out. It is perfectly feasible.

By People's Daily Online