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NDRC: relying on the market can not solve the problem of overcapacity

wallpapers Tech 2020-07-16
Lian Weiliang, deputy director of the national development and Reform Commission, said at a regular briefing on State Council policies held by the Information Office of the State Council today that the serious overcapacity of steel and coal is due to the loss of market mechanism. Therefore, relying solely on the market mechanism can not solve the problem of overcapacity. "To promote the de capacity of steel and coal, we must give full play to the decisive role of the market in allocating resources and better play the role of the government. "Lian Weiliang said that the government's role is also based on respecting market laws. Lian Weiliang said that in order to eliminate production capacity, we must first eliminate backward production capacity. For backward production capacity, we must give full play to the role of the government to make it withdraw and avoid "bad money drives out good money". For advanced production capacity, we should make it play a full role instead of taking on the task of de capacity. For other production capacity, the government needs policy guidance to make it conform to the market law and exit orderly. "The central government will not take subsidy measures to support steel and coal to increase production capacity, and the special subsidy fund is unlikely to be used to increase production capacity, but to reduce production capacity. "At present, relying solely on market forces, some enterprises may not be willing to withdraw," said Lian. However, the government can improve the enthusiasm of enterprises and change the situation of overcapacity.

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