Authorities have called for efforts to prevent new capacity being added in China’s flat glass and cement industries.
Following efforts to cut capacity, the two sectors have improved their profitability, which prompted certain regions to expand their capacity, according to a notice by the Ministry of Industry and Information Technology and the National Development and Reform Commission, Chinese news agency Xinhua reports.
The notice bans any approvals of new construction projects as the oversupply situation in the two industries remained ‘grim’.
Environmental approvals as well as credit support should also be halted, while projects of capacity replacement should strictly follow local plans, according to the notice.
For years, many industries in China, including steel, cement, aluminum, flat glass, and coal, have been running at overcapacity.
Related businesses in land supplies, environmental approvals as well as credit support should also be halted, while projects of capacity replacement should strictly follow local plans, according to the notice.
The move is the latest sign of the government's determination to regulate overcapacity after its efforts to cut capacity in recent years helped support economic growth.