Eliminating backward production capacity is more difficult than building advanced enterprises

Abstract Minister of Industry and Information Technology Li Yizhong said at the 2009 China Development Forum High-Level Forum on March 23 that it is more difficult to eliminate backward production capacity than to build advanced enterprises. Li Yizhong said that many Chinese industries are the world's number one, but they are big but not strong. He said that it is very important...


Minister of Industry and Information Technology Li Yizhong said at the 2009 China Development Forum High-Level Forum on March 23 that it is more difficult to eliminate backward production capacity than to build advanced enterprises.
Li Yizhong said that many Chinese industries are the world's number one, but they are big but not strong. He said that the important reason is that a large number of backward production capacity needs to be eliminated, and the elimination of backward production capacity is a very difficult task. The so-called construction is big and small, and it is easy to build a large one.
Although China's industry has developed greatly over the past few decades, its foundation is weak. Li Yizhong said that the path that has been passed in the past "has some defects" and that history has formed a large amount of backward production capacity.
“Often when considering the project, there are few markets, considering less resources, considering less feasibility, and there are many blindness. Therefore, while the industry is developing rapidly, many industries have overcapacity.” Li Yizhong bluntly, blindness is an important The reasons are closely related to the entire management system, the level of productivity development, the quality of the operators, and the level of awareness of our officials.
Li Yizhong said: "When the economy is too fast, everyone can survive and make money. Once the economy is sluggish and the market is sluggish, many companies stop production, go out of business, and even go bankrupt."
Li Yizhong said that we lack key technologies and core technologies, many of which are low-level repetitions and cannot withstand the test of the market. The reason for this situation is that the technical level of many industries in China is quite different. We have the world's most advanced factories, companies, and the world's most backward companies.
In particular, he said in the example of coal mines that we have the most advanced coal mines in the world. Whether it is from the level of mechanization and automation, or from the mortality rate of millions of tons of coal, it is comparable to American companies, but it is also the most in the world. A backward coal mine.
"Therefore, we talk about adjusting the structure. We must not only talk about the need to go to large enterprises, advanced equipment, but also to eliminate backward production capacity. Only by eliminating backward production capacity, the overall quality of China's industry can be improved." Li Yizhong said.
For institutional reasons, Li Yizhong said that the direction of the overall system reform is correct, that is, marketization. Let the market test and let it have a process. In the process, as the government, as the industrial industry management department, as the investment management department, it is necessary to set the necessary threshold according to the market demand. This threshold includes resources, energy saving and consumption reduction. , environmental protection, safe production, science and technology, employment system.
Li Yizhong said: "In addition to entering the market, there must be a threshold, and it is necessary to set a mechanism for outdated production capacity to exit the market. Of course, this is a painful process and a rather long process."

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