2016年CRI Report "Suggests China to Further Cut Overcapacity"

 

As the world's biggest steel producer, China generates over half of global output every year, or more than twice the combined output of the next four leading steel makers¹: Japan, India, the United States and Russia put together.

It's estimated the country's steel output for this year will reach 1.2 billion tonnes, but only half of this can be used.

One of the priorities of the Chinese government is to eliminate outdated² capacity in the industry, but so far efforts to achieve this don't seem to be paying off, largely due to regional protectionism.

In many cases, local steel makers have even expanded their production levels to avoid being shut down.

Joerg Wuttke, President of the European Chamber³ of Commerce, has suggested more financial support on the ground locally might be a better choice when it comes to solving such regional concerns.

"Why do local governments support companies beyond their shelf life? Because they don't have enough money. They are worried about loss of business. They are worried about unemployment. So they keep going. So Beijing has to fiscally⁴ put the local government in a position that they have the money to serve the social obligations they have."

The new report comes around seven years after the chamber published its original report on this topic.

It provides a detailed⁵ examination of the causes and consequences of overcapacity in eight key industries and analyzes⁶ the developments that have taken place over the past years.

Wuttke also says apart from regional protectionism, weak regulatory enforcement has also played a role in hindering policy implementation⁷.

"Very good laws coming from central government, the laws in most cases are tougher than Europe. Than you look around locally. Local governments see things in another way. And companies keep polluting. It's getting covered up in many ways."

The report provides 30 recommendations that should be taken to address the deep-rooted problem, including cutting expenditure⁸ in industries with excess capacity; expanding dividend⁹ payments by state-owned enterprises to reduce unneeded expansion; and the further opening up of the service industry to reduce the reliance on industries with overcapacity.

In the latest step to address steel overcapacity, China's State Council has released a policy outline aimed at cutting steel production by up to 150 million tonnes over the coming five years.

At the same time, the Ministry¹⁰ of Land and Resources has said it will control land used for new coal and iron and steel projects in 2016.

European Chamber of Commerce president Joerg Wuttke said tackling overcapacity is now more urgent than ever, and the worst thing that can happen, is that nothing is done at all.

But he also said European Union companies would be more willing to invest in China if the country's overcapacity problems are reduced.

For CRI, this is Li Jianhua.

1 makers   

n.制造者，制造商（maker的复数形式）

参考例句：

• The makers of the product assured us that there had been no sacrifice of quality. 这一产品的制造商向我们保证说他们没有牺牲质量。
• The makers are about to launch out a new product. 制造商们马上要生产一种新产品。 来自《简明英汉词典》

2 outdated   

adj.旧式的，落伍的，过时的；v.使过时

参考例句：

• That list of addresses is outdated,many have changed.那个通讯录已经没用了，许多地址已经改了。
• Many of us conform to the outdated customs laid down by our forebears.我们许多人都遵循祖先立下的过时习俗。

3 chamber   

n.房间，寝室；会议厅；议院；会所

参考例句：

• For many,the dentist's surgery remains a torture chamber.对许多人来说，牙医的治疗室一直是间受刑室。
• The chamber was ablaze with light.会议厅里灯火辉煌。

4 fiscally   

在国库方面，财政上，在国库岁入方面

参考例句：

• Nor will fiscally stretched governments pump more money into the political equivalent of a leper colony. 财政吃紧的政府也不愿将更多的钱投入这个避之唯恐不及的政治瘟疫区。
• We are more fiscally constrained, which forces us to work smarter and more efficiently. 与F-15相比我们资金上的限制更大了，美女类小游戏，这迫使我们更为精心和有效地工作。

5 detailed   

adj.详细的，详尽的，极注意细节的，完全的

参考例句：

• He had made a detailed study of the terrain.他对地形作了缜密的研究。
• A detailed list of our publications is available on request.我们的出版物有一份详细的目录备索。

6 analyzes   

v.分析( analyze的第三人称单数 )；分解；解释；对…进行心理分析

参考例句：

• This approach analyzes management by studying experience usually through cases. 这个学派通常从实例获得经验，用以分析管理。 来自辞典例句
• The econometrician analyzes statistical data. 经济计量学者要分析统计材料。 来自辞典例句

7 implementation   

n.实施，贯彻

参考例句：

• Implementation of the program is now well underway.这一项目的实施现在行情看好。

8 expenditure   

n.(时间、劳力、金钱等)支出；使用，消耗

参考例句：

• The entry of all expenditure is necessary.有必要把一切开支入账。
• The monthly expenditure of our family is four hundred dollars altogether.我们一家的开销每月共计四百元。

9 dividend   

n.红利，股息；回报，效益

参考例句：

• The company was forced to pass its dividend.该公司被迫到期不分红。
• The first quarter dividend has been increased by nearly 4 per cent.第一季度的股息增长了近 4%。

10 ministry   

n.(政府的)部；牧师

参考例句：

• They sent a deputation to the ministry to complain.他们派了一个代表团到部里投诉。
• We probed the Air Ministry statements.我们调查了空军部的记录。