China: MIIT cracks down on outdated production capacities

China: MIIT cracks down on outdated production capacities
Published: 29 June 2010

The Ministry of Industry and Information Technology (MIIT) will temporarily suspend the granting of  approvals for projects in regions where outdated production methods are not made obsolete in a timely manner, reports China Securities Journal, citing Miao Wei, vice governor of the MIIT.

According to Miao, the MIIT could use a differentiated pricing policy for power and initiate reforms on energy prices in order to curb energy consumption and reduce demand for high-emission products.
Outdated production methods exists in 18 industries such as the iron and steel refining, aluminum refining, coke coal, cement and fiber sectors. The outdated production capacities account for approximately 15 to 25 percent of total production capacities.