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NANNING, Nov. 17 (Xinhua) -- Giving prominence to the market will help tackle industrial overcapacity and transform the current growth model, experts said.
Tuesday's communique after the Third Plenary Session of the 18th Communist Party of China (CPC) Central Committee stressed profound economic
reform nike air force 270 black purple for sale , with the market to play the decisive role in allocation of resources and the government working harder.
Zhang Jiashou, an economics scholar in south China's Guangxi Zhuang Autonomous Region, said that the reforms will deal with excess capacity.
"It will provide an opportunity for China to finish off extra industrial capacity which is wasting resources," he said.
China currently has severe overcapacity. The average utilization rate in oversupplied sectors such as steel is below 75 percent, far lower than the
international average, and around 22 percent of production capacity in China's
major industrial companies sat idle in the first half of the year.
Such extra capacity can be seen in Guangxi's Pingguo County nike air force 270 carnivore for sale , one of the major production bases for the Aluminum Corporation of China (Chinalco), a key state-owned
enterprise. The county is known for its aluminum resources and has one of
China's biggest aluminum processing industries.
Chinalco in Guangxi has a manufacturing capacity of 150,000 tonnes of electrolytic aluminum annually, but one sixth of that is idle, according to Yang
Yurong, factory director.
"Although we have abundant aluminum resources nike air force 270 medium olive mens for sale , the high price of electricity price and the falling price of electrolytic aluminum have restricted
development, leading to overcapacity," Yang said.
Electrolytic aluminum manufacture consumes a staggering amount of electricity, but lack of unified pricing allows some areas with low electricity
costs launch new projects, exacerbating an already grievous overcapacity crisis,
The poor electricity pricing mechanism is just part of a broader picture. Chi Fulin nike air force 270 medium olive for sale , head of the China Institute for Reform and Development, believed that marketization of productive factors is
not good enough, causing waste and excess capacity.
"Over the past 30 years, marketization level of the commodities has grown by leaps and bounds, a glaring contrast to other production factors such as natural
gas, coal nike air force 270 atmosphere shoes for sale , electricity," Chi said.
Another reason for excess industrial capacity is too much local governments intervention, which has blurred the line between marketization and interference,
said Zhao Zhenhua, an economist at the Party School of the Central Committee of
the Communist Party of China (CPC).
Zhao noted that in many parts of China, slogans promoting big projects and investments can be seen everywhere nike air force 270 sherbert for sale , showing local governments' blind passions for economic development.
"What appears to be overcapacity is in fact a revelation of blind competition among local governments," Zhao said, adding that too much artificial
interference has contributed to repeated production.
As China's economy slowed, extra capacity became a major issue, one that the central government is now resolved to tackle.
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