BEIJING, Jan. 12 power comes in the supply-side structural reforms to capacity, the National Development and Reform Commission Secretary-General, spokesman Lee Park Min said today that it would take five measures to firmly resolve the serious overcapacity contradiction, in which iron and steel, coal and other industries, strive through a period of efforts, a breakthrough in terms of resolving overcapacity.

National Development and Reform Commission held a news conference on the 12th, released macroeconomic data and respond to issues, the State Development and Reform Commission Secretary-General, spokesman Lee Park Min attended the press conference and answered reporters’ questions.

Lee Park Min said, the central government to resolve the overcapacity very seriously, put forward a clear requirement is to follow the market Forced, corporate body, local organizations, central support, according to disposal methods, local conditions, and orderly process, the right to maintain social Promoting stable relations with structural reforms. Specifically, according to the law for the implementation of market-based exit to create conditions for speeding up the trial of cases of bankruptcy and liquidation, to implement fiscal support, deal with non-performing assets, the unemployed re-employment and livelihood security as well as special awards complement other measures. To as many mergers and acquisitions, bankruptcy and liquidation less, and do a good job placement of workers work. Accordance with the arrangements and requirements of the CPC Central Committee and State Council, the National Development and Reform Commission jointly with relevant departments, related places to take strong measures, but also achieved some success. Next, the NDRC will take measures in five areas, unwavering resolve contradictions serious excess capacity.

First, continue to implement the “State Council on serious excess capacity to resolve conflicting guidance” to strengthen macro-control and market supervision, prohibited the construction of new capacity in industries with excess production capacity severely projects. To play the role of market mechanism, in accordance with the “group of four”, it is to follow route “digest a batch transfer batch integrate batch, out of a group,” to accelerate the resolve overcapacity. To innovative institutional mechanisms established to resolve serious excess capacity contradictory long-term mechanism to promote industrial restructuring and upgrading.

Second, we must pay more attention to the use of market mechanisms, economic instruments, legal ways to resolve the overcapacity, strict implementation of environmental protection, energy conservation, product quality, safety and other relevant laws and regulations. Strengthen environmental protection, energy consumption, quality, security of hard constraints. In strict law enforcement at the same time, with the use of price leverage and other economic instruments, with the market driven approach to resolve the overcapacity.
Third, policy efforts to increase production capacity to guide the initiative to withdraw. To study and formulate pragmatic and effective incentives to encourage qualified enterprises to take the initiative to push through a variety of channels to cut energy. First, according to the market situation and their own development, adjustment of enterprise development strategies, the initiative to withdraw excess capacity. Second, the implementation of cross-industry, cross-regional, cross-ownership mergers and acquisitions reduction, quit some capacity. Third, the implementation of urban transformation converting steel environmental relocation or reduction. Fourth, with the implementation of “all the way along the” strategy, production capacity through international cooperation, promote the advantages of production capacity, “going out.”

Fourth, create a favorable market environment. Standardize government behavior, withdrawal of government intervention in the market to protect against improper and various forms, and create a market environment for fair competition, so that all types of enterprises to participate in market competition fair. Strengthening legal means to solve the problem of consciousness, according to the law to resolve mergers and acquisitions, production capacity out of the assets of debt disposal and employee relocation and other issues. Safeguard the legitimate rights and interests of creditors, debtors and corporate staff, etc. according to the law. Improve the social security policy, and make proper placement of workers work, maintain social stability.

Fifth, iron and steel, coal and other industries, we strive through a period of efforts, a breakthrough in resolving overcapacity aspect, while the central government will set up special funds to local governments and enterprises to resolve the overcapacity were awards complement this award complementary funds primarily for the placement of personnel.