New Catalogue of Industrial Structure Guidance to be issued soon

According to sources, the 2011 edition of the Catalogue of Guidance for Industry Structure Adjustment formulated by the National Development and Reform Commission is expected to be introduced before and after the Spring Festival. The scope of this adjustment is relatively large. In the coming years, these adjustments will be directly reflected in credit support, capital market financing, financial support, land supply, and electricity prices.
According to sources, in the 2005 edition, “large-scale ethylene construction (80,000 tons/year in the east and coast, 600,000 tons/year in the west, and existing ethylene renovation and expansion) belong to the encouraged category, but the new catalogue Has been removed. Since the 2007 edition of the catalogue (draft for soliciting opinions) was not released to the public, the 2005 edition was introduced more than five years ago. It has not been able to adapt to the new situation in the development of the industry. The new edition has similar adjustments.
Some policies for revitalizing the industry, cultivating strategic emerging industries, and suppressing overcapacity in some industries will all be reflected in the forthcoming new catalogue. "Overall, the adjustment is very large." According to sources. The adjustment will have a significant impact on the direction of industrial development during the 12th Five-Year Plan period.
In 2005, the State Council promulgated the Interim Provisions for the Adjustment of Industrial Structure, which pointed out that the “Guidance Catalogue for the Adjustment of Industrial Structure” is to guide the direction of investment.
The government manages investment projects and formulates and implements important basis for fiscal, taxation, credit, land, import, and export policies. In principle, it applies to all types of enterprises in China. This directory consists of three categories of directories that encourage, limit, and eliminate.
The encouragement class mainly encourages the research and development and industrialization of the domestic technology base, which is conducive to the formation of a new economic growth point and an industry with a relatively large market demand. For encouraged investment projects, all financial institutions should provide credit support in accordance with the principle of credit. For newly-built projects that are restricted, the investment management department shall not approve, approve, or record. The financial institutions may not grant loans, and the land management, city planning, and other departments may not handle the relevant procedures. For phase-out projects, all financial institutions should stop all forms of credit support and take measures to recover the loans that have been issued; all regions, departments and relevant enterprises must take effective measures to phase out them within the prescribed time limit, and the national prices within the phase-out period. The competent authority can increase the price of electricity supply.

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