On May 10th, Premier Li Keqiang chaired a State Council executive meeting to listen to the progress of production capacity and key industries to eliminate backward production capacity supervision reports, and to promote economic structure optimization.

The meeting pointed out that more market-oriented, rule of law means to resolve and eliminate excess backward production capacity. Included in the annual capacity to the coal mine should all quit at the end of November, resolutely control the imports of low-quality coal, strengthen debt disposal guidance, encourage mergers and acquisitions.

  Vice president, China iron and Steel Industry Association, Metallurgical Industry Planning Research Institute Li Xinchuang believes that steel prices in the near future, that steel market situation is not so good, Chinese excess steel production capacity is still serious, so we still need to increase efforts to capacity.

  Resolutely investigate and punish illegal production enterprises

  The State Council executive meeting pointed out that to eliminate and eliminate excess and backward production capacity is an important task of the structural reform of the supply side, and is the inevitable requirement of changing the mode of development and promoting the transformation of the old and new kinetic energy.

  This year, all localities and departments to continue to pay close attention to the implementation of the work, the elimination of backward production capacity of iron and steel, coal industry has achieved positive results, the total exit production capacity of 31 million 700 thousand tons of steel production capacity of 68 million 970 thousand tons of coal, 63.4% of the annual task and 46%.

  According to the government work report this year, 2017 to Yajian 50 million tons of steel production capacity of about 1.5 tons of coal production capacity, exit. At the same time, to be eliminated, unfinished coal production capacity more than 50 million kilowatts.

  The meeting pointed out that the inspection found that changes in supply and demand phase led to the decline in production capacity, some places eliminate backward production capacity lags behind, resettlement of workers, debt disposal, mergers and acquisitions and other difficult issues.

To this end, the next step, we must use more market-oriented, rule of law means, solid and effective solution and eliminate excess backward production capacity. Resolutely investigate and punish illegal production and construction and not in line with environmental protection, quality, safety and other standards of enterprises, the work of the local authorities should be seriously accountable.

  All localities should limit the preliminary investigation will find the land of steel production capacity completely banned, removal of equipment, to prevent a stirring among the dry bones. Included in the annual capacity to the task of coal mine to withdraw at the end of November. Eliminated, unfinished task of coal power project as soon as possible to clear the time limit, the responsibility to the people.

  At the same time, to strengthen supervision and supervision, all localities should promptly publish relevant information about production capacity, improve the reporting system, to prevent the elimination of backward production capacity fraud, while firmly controlling the import of low-quality coal.

Reporters learned that, last year, when the national implementation of production capacity, a lot of production enterprises instead of resumption of production, because prices rise faster, profitable enterprises. For example, in the first quarter of last year, the national iron and steel prices rose about 30%.

  Li Xinchuang believes that the recent decline in steel prices, this round of capacity or will not lead to significant fluctuations in prices. "If the domestic steel shortage, we can also export less, and then meet the needs of domestic production."." He said.

Customs figures show that in 1-4 months, China exported 27 million 210 thousand tons of steel, down 25.8%. Prior to 2016, China exported about 1 tons of steel.

  Metallurgical Industry Economic Development Research Center, former deputy director Liu Haimin believes that the market rule of law means to eliminate and eliminate excess backward production capacity, is a good guide, simply through administrative means, it is difficult to capacity. "To capacity to give local initiative, so that local voluntary production capacity, in addition to social participation, for example, for polluting enterprises investigated."

  Do a good job placement of workers and the "double"

  In May 10th, the meeting pointed out, to do the transfer resettlement in a prominent position to capacity. Create a "double" coal support steel platform, accelerate the development of new energy, strengthen the employment difficulties workers helping support.

  In April 25th this year, Lu Aihong, spokesman of the Ministry of human resources and social affairs, told the news release in the first quarter that this year, the total capacity of the steel and coal surplus needed to be relocated to about 500 thousand employees. The task is still very heavy.

  In 2016, according to the arrangements of the State Council, the Ministry of Finance issued the "industrial structure adjustment measures" special award for the management of funds, clearly arranged 100 billion yuan of special funds to support the premium to resolve excess capacity, mainly for the resettlement of the workers.

  The meeting raised the need to promptly allocate and make good use of the central finance special award supplementary funds, local and enterprises should implement the relevant funds and measures to ensure the diversion of workers employment, a way out, life is guaranteed.

  The meeting also proposed to strengthen the guidance of debt disposal, and encourage qualified enterprises to implement mergers and acquisitions.

Earlier, there were publicly reported that the total debt of the national steel industry was about 3 trillion yuan, with a debt ratio of nearly 70%. Because of the heavy debt of steel enterprises, some banks and local departments are not actively engaged in the production and disposal of zombie enterprises, because of the loss of employment and debts.

  To this end, some experts believe that this requires comprehensive consideration, the resettlement of workers, new industrial development, land value-added, debt restructuring and other aspects, to achieve an overall enterprise and economic invigorated.

  Li Xinchuang believes that the capacity to purpose is to achieve better development, rather than simply "go", "if the capacity to not make enterprise development better, and can not solve the problem of environmental protection, is not simply say that the capacity to have tasks to complete".