To: mishedlo who wrote (10117 ) 3/15/2004 8:38:45 AM From: russwinter Respond to Here's how China plans on slowing things down: basically adding to the Train Wreck, by adding even more input costs (removing subsidies and credit, and adding regulatory costs). That'll work in spades to support and enhance my theory <g>. readjusting requirements on technology, energy consumption, safety and quality. The SDRC also is cooperating with the banking sector to tighten credit requirements for steel-expansion projects at existing plants. The newspaper reports that banks will no longer provide loans for those projects that do not meet industrial policy or market-need requirements. China produced 220 million metric tons of steel in 2003, up 15.4% from 2002, according to the China Iron and Steel Association, which says the nation consumed 250 million metric tons. It is estimated that by the end of 2005, China's annual steel output will reach 330 million metric tons, which would be enough to meet the nation’s projected market demand of 2010. "This indicates that there is an over-heating in investment in the steel industry," a SRDC spokesman tells the Beijing-based national newspaper. The paper reports: “The SDRC has joined hands with relevant authorities to tighten examination and approval of land use of steel plants. The government will not approve the land development and construction of steel projects that are not in line with the industrial policy and development plan.” Also, the government will no longer give tax rebates to imports of equipment for the construction of unapproved steel projects. And, the central government is urging local governments to abolish electricity price discounts. The Chinese government has ordered local governments to conduct a survey of regional steel plants to check whether laws have been violated in environment protection, land use and energy consumption. In 2002, China's fixed assets investment in steel industry stood at 70.4 billion yuan ($8.5 billion), surging 45.9%. In 2003, the figure rose to 133.2 billion yuan ($16.1 billion), up 89.2% from 2002.
