Original title: Li Keqiang: We must not allow backward production capacity to squeeze out advanced production capacity

The Standing Committee of the Political Bureau of the CPC Central Committee heard a report from the State Council on the investigation and handling of violations of violations by Jiangsu Huada Steel Co., Ltd. and Hebei Anfeng Steel Co., Ltd. on December 22. The previous day's State Council executive meeting specifically studied the relevant work of Hebei Anfeng Steel Co., Ltd. and Jiangsu Huada Iron and Steel Co., Ltd.'s investigation and handling of violations.

Li Keqiang emphasized at the executive meeting: “Only by unremittingly resolving backward production capacity can we achieve economic transformation and upgrading. We must not allow backward production capacity to squeeze out advanced production capacity!”

Nearly a month ago, Li Keqiang was specially deployed at the executive meeting of the State Council. In the case of individual companies that did not follow the rules and swindle in the process of capacity reduction of steel and coal, “the State Council must send an investigation team to resolutely investigate and severely blame.” In less than a month, the Prime Minister presided over the executive meeting of the State Council to hear about the production and sales of “Guan Strip Steel” by Jiangsu Huada Iron and Steel Co., Ltd., and Hebei Anfeng Iron and Steel Co., Ltd. did not approve the construction of the first batch of side-by-side steel projects, and two incidents. Responsible personnel report on their opinions.

While listening to reports from relevant departments, Li Keqiang had been reviewing the investigation report and asked the relevant person in charge of the department details from time to time. He pointed out that taking iron and steel and coal industries as the focus to promote capacity reduction is an important part of deepening supply-side structural reforms and fulfilling the task of “three go ones, one drop and one supplement”. This survey processing is a powerful measure taken by the State Council to implement the central government's plan to remove production capacity. The survey also found serious problems. That is, backward production capacity still disrupts the entire market and affects the overall work of overcapacity.

“The excess capacity, including the more harsh 'Ground Strip', is totally inconsistent with national standards. However, some places have not been dismantled at all. As long as the price has risen slightly, it will immediately “resurrection”!” The Prime Minister said here that he added tone of voice. The companies are neither in line with national quality and environmental standards, nor do they pay workers the insurance they have to pay, and there are almost no safe production safeguards. How do the formal production of advanced production capacity compete with them?"

The Prime Minister sternly stressed that under the current backdrop of the rebound in the prices of international bulk commodities, we must take more effective measures to “grab a few typical models” and give full play to the role of deterrence to ensure the smooth progress of capacity elimination and elimination of outdated production capacity.

Li Keqiang pointed out that there are indeed individual wind-breaking companies that are trying to “get out of the fire” through the “drilling” policy. However, on the other hand, we must also pay attention to the fact that some local governments have serious oversight, weak implementation of national policies, failure to report according to regulations, and administrative efficiency. Problems such as lower levels must be taken as an example.

“Relevant localities and departments should take this matter and reflect on it! Enterprises report a high-standard project to you, and actually lower the standard when they actually build it. Things like this are just sitting in the office. "It is difficult to find out," said the premier. "This incident has given us a wake-up call: When the government liberalizes market access, it must strictly abide by the management standards, effectively strengthen post-event supervision, and create a fair competitive market environment." ."

In order to strictly enforce party discipline and national laws and ensure the smoothness of central government decrees and the prohibition of their orders, the Party Central Committee and the State Council have decided to seriously handle and severely hold two incidents. Li Keqiang explicitly asked relevant departments to seriously deal with the "typical" of the two violations, and at the same time as soon as possible nationwide to carry out a "special inspection" of backward production capacity. He reminded related departments that in the future implementation of the process of de-capacity, we must pay more attention to the use of big data, remote sensing satellites and other technical means to monitor the new production capacity in real time and strengthen supervision.

“Every backward production capacity that does not meet environmental protection standards and national standards must be resolutely eliminated. We must not let the backward production capacity that has been eliminated be revived!” (Li Zhinan)