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Li Yizhong: Setting Back Mechanism Of Backward Production Capacity In Textile Industry

2009/3/26 0:00:00 26

Li Yizhong, Minister of the Ministry of industry and information technology, said that the measures to stimulate the economy have seen initial success. However, the overall industrial situation is still grim. The number of enterprises with difficulty in operation is still expanding. The urgent task is to revive enterprises and not bankrupt them.

Li Yizhong stressed that eliminating backward production capacity is often more difficult than building advanced capacity. The Ministry of industry and Commerce will cooperate with the national development and Reform Commission to set up an industrial investment threshold and a backward production capacity exit mechanism to increase industrial concentration and eliminate backward production capacity.

Li Yizhong said that the number of enterprises facing difficulties in operation is still expanding.

He said that despite the positive signs of individual industries, "the industrial situation is still grim, and it is still in the most difficult period. It has not gone out of the trough, nor can it be easily improved."

The Ministry of industry and Commerce will mainly organize and implement nine key industrial sectors, including iron and steel, automobile, shipbuilding, petrochemical, light industry, textile, nonferrous metals, equipment manufacturing and electronic information, together with the adjustment and revitalization plan of the logistics industry. Li Yizhong revealed: "now we and the National Development and Reform Commission are studying and formulating specific provincial and municipal rules and plans, and promoting relevant policies and measures."

He said that China's industrial dependence on the international market is highly affected by the financial crisis.

A number of small and medium-sized enterprises and some large enterprises have difficulty in production and operation, stock increase and shortage of funds. The area where enterprises stop production, limit production, shut down or even shut down is still expanding.

In answering questions about the industrial upgrading of Guangdong's Pearl River Delta and "changing the cage and changing birds", Li Yizhong said that the most urgent task at present is to reverse the economic downturn as soon as possible. The most urgent task is to revive enterprises and not let enterprises go bankrupt.

Li Yizhong pointed out that the government will focus on solving the financing difficulties of SMEs.

At present, the central finance guarantee fund of 1 billion yuan has been put in place, divided into 330 guarantee institutions, which can provide 250 billion yuan loan for 40 thousand small and medium-sized enterprises.

China's banking system will also take a lot of financing measures. It is expected that this year, SMEs will receive a total guarantee of about 600000000000 yuan through collateral.

Li Yizhong criticized the current industrial management system, resulting in overcapacity in many industries.

"There are many practical problems. There are both cognitive problems and institutional problems."

He pointed out that when we were on the project, we should not only talk about big enterprises, advanced equipment, but also eliminate backward production capacity.

Li Yizhong stressed that the Ministry of industry and Commerce will set the threshold for necessary industrial investment according to market demand, including resources, production safety, science and technology, and employment system.

At the same time, we must also set backward production capacity and withdraw from the market mechanism. "Eliminating backward production capacity is more difficult than building advanced enterprises."

"This is a painful process and a very long process."

Li Yizhong said that the Ministry of industry and Commerce will cooperate with the national development and Reform Commission, so that the new projects and technological pformation projects in the industrial sector can be better used in the market mechanism to avoid low level duplication of construction.

He said that in the current government's efforts to increase investment, we should avoid the "two high one capital" (high pollution, high energy consumption and resource) projects.

Li Yizhong said frankly that China's industry is "big but not strong".

He pointed out that although China ranks first in the world in terms of output of steel, cement, raw coal and fertilizer, its industrial growth pattern is extensive, its structure is not reasonable and lacks core competitiveness.

A large number of backward production capacity needs to be eliminated and the comprehensive competitiveness is not high, which restricts the further development of China's industry.

Editor in chief: Xu Qiyun

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