The story appears on

Page B2

December 31, 2009

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » Economy

Scrutiny to avoid producing too much

CHINA will closely supervise production in certain industries, including coal chemical and wind power equipment, to prevent them from overproducing, senior government officials said yesterday.

"There exists a worrisome redundant construction of facilities and blind expansion of capacity in these industries," said Li Ningning, deputy director general of industrial department under the China National Development and Reform Commission. "If we don't adjust them in time, it will harm the progress of China's economic recovery and lead to vicious competition."

She said the country is considering to limit or curb new projects in these industries but did not provide a timetable.

The coal chemical industry, which uses coal to produce various types of energy, has expanded rapidly in China. More than 1 trillion yuan (US$146.4 billion) has been invested in it so far this year. But some projects lack core technology and some are too advanced for the domestic market, Li said.

"The modern coal chemical industry is investment-intensive, very high-tech, and requires heavy consumption of natural resources such as coal and water. The sector is still in the research and development phase in China, and we are not qualified to build facilities on a large scale," Li said.

Also, China's production of Vitamin C has also grown so fast that may lead to an oversupply situation.

China produced 126,000 tons of Vitamin C last year, accounting for 90 percent of the world's market. But this year China reported another 75,000-ton capacity either under construction or to be built. If the trend continues, China will produce more Vitamin C than the world needs by 2012.

Shi Lishan, deputy director general of the new energy department under the National Energy Administration, said China encourages the development of clean energy, but firms should diversify their role in the production chain of wind power equipment.

There are more than 70 wind power equipment manufacturers in China. But most of them assemble parts as only about 10 can make the equipment themselves, Shi said.

He advised more firms to produce parts such as electrical machinery or gear boxes for wind power equipment, where there is less risk of overcapacity.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend