The National Development and Reform Commission is vigorously promoting the elimination of inefficient and backward production capacity in industries such as oil refining and steel.

 

       On May 20, at a press conference held by the National Development and Reform Commission, Li Chao, deputy director of the Policy Research Office and spokesperson of the National Development and Reform Commission, said that at present, China's economy is in a period of transition from old to new drivers, new industries, new formats and new models are emerging, and traditional industries are accelerating transformation and upgrading. In this process, some industries have indeed encountered structural problems, some blindly follow the trend of investment, and some cannot keep up with the pace of technological updates and iterations.
       "Some companies are caught in "involutionary" competition, some sell at low prices, ultra-low prices, or even below cost prices, and some make and sell fakes and sell inferior products. These have broken the boundaries and bottom line of market competition, distorted the market mechanism, and disrupted the order of fair competition, and must be rectified." Li Chao said.
       How to rectify "involutionary" competition? Li Chao said that the National Development and Reform Commission, together with relevant parties, will address the crux of the problem, formulate policies based on the industry, prescribe the right medicine, and resolve the structural contradictions of key industries with both symptomatic and root causes, and promote the healthy development and quality upgrading of the industry.
       First, adhere to innovation-driven and accelerate industrial transformation and upgrading. Strengthen the leading role of enterprises in scientific and technological innovation, support enterprises to improve product quality and core competitiveness through scientific and technological innovation, increase high-end production capacity and high-quality supply, continuously explore diversified markets, and enhance development resilience.
Second, strengthen local constraints and work harder to break local protectionism and market segmentation. In January this year, the "Guidelines for the Construction of a             National Unified Market (Trial)" was issued, requiring all regions not to break the red line bottom line stipulated by the state and implement preferential investment promotion policies in finance, taxes, prices, land, resources and environment in violation of regulations, and to focus on the situation of local protectionism and market segmentation that has been repeatedly banned and renewed.
       Third, optimize the industrial layout and curb the disorderly expansion of backward production capacity. Give full play to the supporting role of quality and standards, promote mergers and reorganizations in a market-oriented manner, and accelerate the elimination of inefficient and backward production capacity in industries such as oil refining and steel; scientifically demonstrate new production capacity projects in industries such as coal chemical industry and alumina to prevent blind new construction; strengthen industry self-discipline and guide new energy vehicles and photovoltaic companies to focus on technology research and development.
       Fourth, strengthen market supervision and purify the market competition ecology. We will crack down on market chaos such as inferior quality and low prices, investigate and punish unfair competition and price violations in accordance with the law, resolutely crack down on infringement, counterfeiting, counterfeiting and selling fake goods, increase quality supervision and inspection efforts, jointly maintain a market order of fair competition and survival of the fittest, and effectively give play to the vitality and role of the market mechanism.