A few days before the State Council executive meeting, the "Notice on Further Accelerating the Elimination of Outdated Production Capacity" was passed, which will inevitably increase local government pressure. In this regard, Zhu Hongren, a member of the party group, chief engineer and spokesperson of the Ministry of Industry and Information Technology, said that if the market is completely relied on, the process of eliminating backward production capacity will be slower. Under this circumstance, the State Council passed the notice request and Active support will always be given.
Regarding the elimination of backward production capacity, Zhu Hongren said that eliminating backward production capacity is an important task, and the current elimination of backward production capacity is more important and urgent than in the past. The main reason is that China is now facing the pressure to further reduce environmental resources. Therefore, we must constantly adjust the structure and transform the development mode to accelerate the steady and rapid development of industry and improve the quality and efficiency of economic growth.
Under the effect of the survival of the fittest in the market economy, some of the backward production capacity will be gradually eliminated in the process of survival of the fittest. However, Zhu Hongren said that if it relies entirely on the role of the market, this process may be slower, which may bring some obstacles to our current transformation of economic development, thus delaying the process.
Under the above circumstances, the State Council initially reviewed and approved the requirements of the Notice on Further Accelerating the Elimination of Outdated Production Capacity. All along, in the process of eliminating backward production capacity, the state has been giving active guidance and support, giving full play to the fundamental role of market mechanisms in eliminating backward production capacity. Zhu Hongren cited that from 2007 to 2009, the central government allocated 15.5 billion yuan of funds to support the economically underdeveloped areas to eliminate backward production capacity through transfer payments. With the gradual deepening of the work of eliminating backward production capacity, the backward production capacity that has been eliminated will be rewarded by fiscal policy and promoted and supported by various policy measures to ensure that China's industrial economy maintains sustained, stable and rapid development.
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