China to "strictly control" investment in steel sector (Xinhua) Updated: 2005-04-21 09:41
China has to "rigidly control" the growth of fixed assets investment in its
iron and steel industry so as to avoid excessive expansion of the sector, said
top policy-makers in Beijing Wednesday.
Participants of Wednesday's executive meeting of the State Council, China's
central government, acknowledged investment on fixed assets in the industry had
already been "rather great" at the moment.
The meeting, chaired by Premier Wen Jiabao, deliberated on and adopted in
principle China's iron and steel industry development policy.
The meeting said the industrial mix of China's iron and steel industry has to
be further adjusted to ensure the healthy growth of the industry. Manufacture of
products that consume a very large amount of energy and materials and cause
heavy pollution had to be contained, while export of such products would also be
put under strict control.
The meeting called for an accelerated shift of the growth mode in this
sector, improved efficiency in the utilization of energy and resources, and an
"appropriate and economical" use of steel products.
The meeting also underscored the importance of facilitate consolidating
China's iron and steel sector, optimizing its geographical distribution, and
building a solid resource supply system by tapping both domestic and overseas
resources.
Although it has contributed greatly to China's economic growth, the
fast-expanding industry has also strained electric power supply and the
country's transport system, causing serious pollution and intensifying
international competition for iron ore.
China turned out 272 million tons of rolled steel in 2004, making it the
biggest steel producer in the world.
Industrial insiders say a number of steel production projects involving more
than 300 billion yuan (US$36 billion) of investment were under construction at
the end of last year. Upon their completion, China's steel production capacity
would possibly add another 100 million tons.
