China to Eliminate Large Amount of Backward Production Capacity by 2010

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Researched by Industrial Info Resources (Sugar Land, Texas)--The National Development and Reform Commission published in mid-December a revision to the "Directory for Industrial Structural Adjustment (2007)," encouraging changes to China's financial-services industry, such as the establishment of a credit card network service and a del credere, or trust, system for small and midsize enterprises. A batch of production process, equipment and products are listed to be eliminated by the end of 2008 or 2010. The new directory also encourages changes to other service industries in areas including modern logistics, and financial, science and technical services.

The number of items in the “elimination category” has been expanded. For instance, in the petroleum, natural gas and chemical industries, the older directory specified that phosphor production lines with annual capacities of 1,000 tons or less will be eliminated; however, the revised directory states that phosphor production lines with annual capacities of 3,000 tons or less will be eliminated by the end of 2008 and that those with annual capacities of 5,000 tons or less will be eliminated by the end of 2010. In the iron and steel industry, the older directory specifies that ferroalloy electric furnaces with capacities of 5,000 kilovolt-amperes (kVA) or less will be eliminated by the end of 2005; however, the revised directory states that electric furnaces with capacities of 5,000-6,300 kVA will be eliminated by the end of 2008 and that those with capacities of 6,300 kVA will be eliminated by the end of 2010.

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