Li Keqiang talks about the iron coal crisis
In January 4th, Li Keqiang hosted a conference on the development and Crisis Analysis of steel and coal industry in Taiyuan, and emphasized on the development of steel and coal industry at this stage and looking for a reliable solution.
At the meeting, Li Keqiang said that coal and iron and steel are important industries of the country as well as basic industries, which have contributed to the construction of industrialization. In 2015, domestic market demand declined and international commodity prices continued to fall, leading to serious residual capacity in steel and coal industry. Enterprises faced survival crisis, and then affected the stability of economy and employment.
We must enhance the sense of urgency, carry out the spirit of the central economic work conference, set up the new concept of development, efforts to promote structural reform, properly handle the relationship between reform, development and stability, play two central and local enthusiasm, more use of market measures, and resolutely eliminate backward production capacity, classification in order to resolve excess capacity, and solve the funds required, personnel placement and debt to deal with the problems, to help enterprises achieve the turnaround, increased profits on the development of new road in structural adjustment, promote economic stability.
Enterprises should be encouraged to carry out the merger and reorganization of the upstream and downstream, and improve the industrial concentration. Guiding the loss of hopeless enterprises to take the initiative to exit. Four is to exploit capacity and use space. Support the "Internet plus", international cooperation capacity and equipment to go out, actively expand domestic and foreign markets. The five is to create new employment opportunities and provide support for the coal and steel enterprise personnel transfer, support the traditional enterprises to carry out the "double".
To resolve the overcapacity, should continue to adhere to the ruling spirit, combined with the deepening of reform, enterprise restructuring, optimization and upgrading. First, strict control of new capacity. In the past three years has been 9 tons of coal, more than 10 million to resolve steel production capacity of more than 200 million tons on the basis of further efforts, careful argumentation and reasonably determine the next three years, iron and steel, coal industry overcapacity resolve target. According to the market demand, the total amount of steel and coal "ceiling" is set. Since 2013, the state has ceased to record the new production capacity of steel projects, to strengthen supervision and implementation, strict accountability. In principle, we should stop examining and approving new coal mines, technological transformation of new production capacity and nuclear increase in production capacity of coal mines.
Two is to eliminate backward production capacity. Environmental protection, energy consumption, safety production can not reach the standard and production disqualification or elimination of iron and steel production capacity should be shut down in accordance with the rules and regulations according to law, dismantling power equipment. If the coal mining method and technology prohibited by the state are not allowed to carry out technical transformation or fail safe production, we must resolutely close down and eliminate the wellhead. The thirteen kinds of small backward small coal mines which should be shut down according to law must be put in place in 2016.
The three is to optimize the capacity of the stock. Straighten out the formation mechanism of factor price and market, improve industrial access energy consumption, material consumption, water consumption and environmental protection standards, promote product upgrading and speed up transformation to high-end, intelligent and green direction.
To resolve the excess capacity to adhere to the "market forces, enterprises and local organizations, the central support, comprehensive measures, to use economic and legal, technology, environmental protection, quality, safety and differentiated means, play policy combined". One is to increase financial and tax support. The central government has set up special funds to subsidize the excess capacity funds raised by local and enterprises, mainly for personnel resettlement, and the support is linked to the scale of production capacity. We should properly solve the social and historical problems of the enterprise office. Two is to strengthen financial support. We should improve the policy of debt disposal, cancellation of bad assets and other policies, support the enterprises who voluntarily withdraw from production capacity, and continue to lend loans to illegal businesses and "zombie enterprises". At the same time to prevent corporate debt evasion. The three is to properly settle the staff. Pocket bottom line livelihood security prison, through the transfer of employment, to support entrepreneurship, internal Tuiyang, public job placement and other ways, reasonable arrangements for the diversion of workers, safeguard their legitimate rights and interests. The four is to strengthen the supervision and assessment. The provincial government to resolve the overcapacity responsibility of the local area. We should clear and cancel the local preferential policies and protective measures for overcapacity enterprises which are violated by the relevant regulations, and withdraw the backward production capacity into the local assessment index system, strengthen social supervision and prevent them from revival.
At present, most of China's steel and coal equipment are in the world's advanced level, and the production and operation of enterprises are difficult, and the most important factor is the abundance of surplus personnel. In recent years, through the implementation of innovation driven development strategy, carry out public entrepreneurship, innovation and the "Internet plus" actions such as creating jobs, create favorable conditions for the upgrading of traditional industries downsizing.
The adjustment and optimization of industrial structure not only on the old industry, we should pay more attention to the development of new industries, new formats and new energy, to create a "double engine" for the traditional industries to reduce the surplus workers, develop new jobs, improve labor productivity through innovation, full of new life.
