China to cut export tax rebates on items with high energy input
China will cut the export tax rebate on items which involve high energy use in the production process, as well as on primary products, in a bid to curb excessive investment in such sectors, the top state planning agency said.
The National Development and Reform Commission said at a media briefing that the government will rein in investment in industries involving the heavy use of energy as the focus of its macro controls this year.
Investment in the cement sector rose 39.4 pct year-on-year in the first quarter, while investment in the aluminum sector rose 49.3 pct, the NDRC said.
The state planner said the government will close the cement plants with obsolete production technology this year.
Energy consumption in the iron and steel, non-ferrous metals, refinery, power, coke, construction materials and chemical sectors accounted for 70 pct of consumption in 2006, the NDRC said.
The NDRC has required local governments to stop offering power price discounts to high energy-consuming firms.
Chinese Premier Wen Jiabao said at a State Council conference that China sees energy saving and emissions reduction as a focus for its efforts and will strive to achieve energy efficiency targets.
Wen noted that China faces challenges in achieving the targets due to strong growth in high energy-consuming and polluting industries.
In the 11th Five-Year Plan running to 2010, China set a 20 per cent reduction target for energy consumption per unit of GDP.
Last year, China failed to reach its goal of reducing energy use per unit of GDP by four per cent and cutting emissions of pollutants by two per cent. Published under Cement News
