Chinese Government Will Shut Down Obsolete Capacity

The Chinese government requires 2087 companies to shut down. capacity

August 12th, in order to improve the country's energy Efficiency, the Ministry of industry and information of China notified more than 2000 companies to clear or close obsolete production facilities at the end of 9.

Senior officials of the Ministry of industry and Commerce say that outdated capacity consumes a lot of electricity, pollutes the environment and endangering safety. He added that such facilities reflect the degradation and quantitative pattern of China's economic growth. In addition, these outdated capacity is one of the reasons for low quality, inefficiency and weakness in national economic development.

Any company that fails to follow the government's instructions to deal with their waste disposal permits will not be able to obtain government new engineering permits and bank loans.

Although the Chinese government vowed to increase energy efficiency by 20% at the end of 2010 in 2005, efforts are still being made to achieve this goal. After cutting the electricity consumption by 14.4% in 2009, it seems that electricity consumption has increased by 0.9% in the first half of 2010, as China's demand for energy resources continues to rise.

With the government's new intervention measures, it seems that the government is still stubbornly pursuing the goal of the end of this year.

The 2087 companies threatened will be closed, including 18 industries, such as Spin Printing and dyeing Leatherwear , chemical fiber And ethanol. The 2087 companies listed on the list of shutting down are mostly small and medium-sized Private Companies.