China News Service, June 18, according to the National Development and Reform Commission website, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the National Energy Administration and other six departments recently issued the "Notice on Doing a Good Job in Resolving Excess Capacity in Key Areas in 2020" (hereinafter referred to as "Notice"). The notice emphasizes that it is strictly forbidden to increase the capacity of steel smelting in any name and in any way, seriously investigate and punish various types of steel production capacity violations, accelerate the withdrawal of backward production capacity, and strictly prevent the resurgence of "land strip steel" and the resurgence of excess capacity that has been resolved.

Data map: Workers check equipment operation. Photo by Zhang Jing

  The notice requires comprehensively consolidating the results of capacity reduction. Regions and central enterprises that have not yet completed the "13th Five-Year" target for capacity reduction should coordinate and advance various tasks to ensure that the capacity reduction task is fully completed by the end of 2020. Fully implement the “Look Back” of the de-capacity project, earnestly implement the relevant regulations on capacity identification, closure standards, use of incentive and subsidy funds, capacity replacement, etc., to ensure that the problems discovered by various inspections and self-inspections are rectified in time. Further improve the workbook of capacity reduction and capacity replacement to lay a solid foundation for the development of the "14th Five-Year Plan". Earnestly implement the promotion and implementation of the capacity reduction policy, strengthen supervision and accountability, and ensure that the relevant requirements are implemented carefully.

  Continue to deepen the supply-side structural reform of the steel industry. Further improve the iron and steel production capacity replacement method, strengthen the steel production capacity project filing guidance, and promote the scientific and rationality of the iron and steel project landing. Further strengthen the supervision during and after the event, strictly implement the relevant requirements of safety, environmental protection, energy consumption, quality, land use, industrial policy and capacity replacement, strictly prohibit the increase of steel smelting capacity in any name and in any way, and seriously investigate and punish various types of steel production capacity violations Behavior, accelerate the withdrawal of backward production capacity, and strictly prevent the resurgence of "ground strip steel" and the resumption of excess capacity that has been resolved.

  The notice emphasizes that it is necessary to continue to push the pressure on coal and increase the advantages and disadvantages. Strictly enforce laws on safety, environmental protection and quality, and resolutely eliminate outdated production capacity that does not meet the requirements of safety and environmental protection and does not comply with industrial policies. Adhere to the long-term mechanism of capacity replacement and guide the orderly exit of inefficient and inefficient production capacity. Deepen the reform of the “decentralization management” of the coal industry, accelerate the operation of coal mines under construction to achieve production, release advanced production capacity in a reasonable and orderly manner, and realize the orderly replacement of new and old coal production capacity. Promote the joint operation of coal and power, mergers and acquisitions, transformation and upgrading, and promote the healthy and harmonious development of coal and downstream industries.

  Actively and steadily promote the optimization and upgrading of coal power. Give full play to the role of market regulation and macroeconomic regulation, and eliminate outdated coal-fired generating units that fail to meet the standards. Continue to do a good job of cleaning up and rectifying existing illegal construction of coal-fired power projects, and resolutely put an end to new illegal construction of coal-fired power projects. Issue and implement annual risk warnings, orderly approve the construction of coal-fired power projects on demand, add new coal-fired power generation capacity as needed, and do a good job in coal-fired emergency backup and emergency peak-shaving reserve power supply. Continue to promote the ultra-low emission and energy-saving transformation of coal-fired power plants. Further enhance the power and heat supply guarantee capabilities, consolidate the achievements of coal power overcapacity work, and improve the clean and efficient development level of coal power.

  Speed ​​up the disposal of "zombie enterprises". Conscientiously implement the decision-making and deployment of the Party Central Committee and the State Council on the disposal of "zombie enterprises", and expedite the disposal of "zombie enterprises" determined by the end of 2019 and reported to the General Office of the State Council according to law and regulations. All regions and central enterprises should establish and improve working mechanisms in accordance with requirements, perform their main responsibilities, and strengthen supervision and inspection. In principle, they must complete the disposal of the “zombie enterprises” in the steel and coal industries that have been determined and reported by the end of 2020.

  The notice made it clear that the total production capacity should be strictly controlled. More market-oriented and rule-of-law methods will be used to adjust and optimize the inventory under the premise of controlling the total production capacity. Strictly implement the requirements of the "Notice on Improving Steel Capacity Replacement and Project Recording Work", suspend steel capacity replacement and project filing, and carry out self-inspection and self-correction work to ensure that steel projects meet safety, environmental protection, energy consumption, quality, land use, and industry Related requirements such as policies and capacity replacement. Strictly prohibit the planning and layout of new coal mine projects in national parks, nature reserves, scenic spots, and drinking water source protection zones, and strictly restrict the development of high-sulfur, high-ash, and high-arsenic coal projects.

  Make overall plans to reduce the production capacity and ensure stable supply. Relevant regions and central enterprises must fully understand the new changes and new characteristics of the supply and demand situation, insist on seeking truth from facts, adapt to local conditions, comprehensively consider factors such as regional development, industrial layout, resource allocation, safety and environmental protection, project continuity, transportation capacity and other factors, and rationally arrange capacity reduction targets and tasks , Plan ahead for the "14th Five-Year Plan" related work in advance. In areas where it is difficult to secure supply, it is necessary to combine the outstanding problems that have arisen in recent years, to further improve the emergency plan for supply security, and to formulate work measures in a targeted manner to avoid unbalanced supply and demand and abnormal market fluctuations.

  Take multiple measures to improve the quality of staff placement. Adhere to the staff resettlement as a top priority, establish and improve regular scheduling mechanisms, improve risk disposal plans, and implement staff resettlement policies and measures. For regions with declining industries and a single structure, increase cross-regional labor cooperation, special training, innovation and entrepreneurship support, and improve employment stability. Provide stable returns to enterprises that pay insurance according to law and do not lay off or reduce layoffs in a timely manner, provide unemployment insurance money and other treatment in time for qualified personnel, strengthen reemployment assistance, and provide public employment services and public welfare job support. Effectively maintain the bottom line of people's livelihood.

  Promote asset and debt disposal in accordance with laws and regulations. All localities should conscientiously implement the relevant regulations on asset disposal of enterprises that reduce production capacity and "zombie enterprises", and expedite the disposal of various assets such as land and mineral resources in accordance with the law. In accordance with the requirements of the “Notice on Further Doing a Good Job in the Disposal of Debts of “Zombie Enterprises” and Capacity-Reducing Enterprises” and “Opinions on the Active and Steady Deepening of the Disposal of “Zombie Enterprises””, financial institutions and enterprises are encouraged to actively carry out debt disposal and guide relevant market players In accordance with the principle of marketization and rule of law, distinguish between different situations and adopt appropriate disposal methods, share disposal costs fairly and reasonably according to law, and dispose of direct debts, unified debts and guaranteed debts.

  The notice proposes to improve the efficiency of the use of special award and supplement funds. Strictly implement the "Administrative Measures on Special Awards and Supplementary Funds for Structural Adjustment of Industrial Enterprises" to strengthen fund management and improve the efficiency of fund use. When allocating and using special awards and supplementary funds, full consideration should be given to the actual situation of the enterprise, and more support should be given to enterprises with heavier staff placement tasks and more difficulties. Intensify supervision and inspection, and seriously investigate and punish false reports such as fraudulent claims, embezzlement and misappropriation. Encourage the development of capacity replacement index transactions, and the income from capacity replacement should be used for staff placement.

  Accelerate the promotion of high-quality development of the industry. Consider overall regional development needs and industrial layout, give play to the comparative advantages of various regions, and build a scientific, rational, safe, environmentally friendly, and coordinated industrial layout. Promote the merger and reorganization of steel, coal and power companies and the integration and development of upstream and downstream, improve the industrial basic capabilities and the modernization level of the industrial chain, and build a group of enterprise groups with strong international competitiveness.

  Continuously improve industry governance capabilities. Adhere to the supply-side structural reform as the main line, and accelerate the modernization of the industry governance system and governance capabilities. Relevant departments should combine the division of functions, deepen the reform of "decentralization, management and service", stimulate the vitality of market players, and accelerate the establishment of a modern market system and a policy system that is conducive to the healthy development of the industry. All localities should coordinate the reduction of production capacity and the development of the "Fourteenth Five-Year Plan", make full use of the results of supply-side structural reforms, accelerate the promotion of institutional innovation and governance capacity building, focus on solving the problem of imbalance and insufficiency in the development process, and promote the realization of the steel, coal and coal power industry Higher quality, more efficient, fairer and more sustainable development.

  Notification requirements, strengthen the supervision of violations of laws and regulations and dishonesty. Maintain a high-pressure situation for violations of laws and regulations in various aspects such as project construction, capacity replacement, safety production, ecological environmental protection, price supervision, etc., and make full use of multiple channels such as local self-examination, media unannounced visits, departmental law enforcement, joint supervision, and social reporting. Find together, investigate and deal with, and expose together. Establish and improve the industry credit system, strengthen the collection and sharing of credit information, strengthen the supervision of untrustworthy behavior, and implement trustworthy incentives and disciplinary punishment measures according to law.