CCIEE Holds 54th Monthly Economic Talk

CCIEE Holds 54th Monthly Economic Talk

On December 17, 2013, CCIEE held the 54th Monthly Economic Talk at Beijing Media Center, under the theme of How to Resolve the Problem of Over-Capacity Effectively? Zhang Dawei, General Secretary of CCIEE, presided over the meeting.

Chen Wenling, CCIEE Chief Economist, Wen Xianjun, Vice President of China Nonferrous Metals Association, and Gao Zhi, Director of Cement Industry Research Department, China Development Strategy Institute for Building Materials Industry, delivered their speeches.

Chen Wenlin said that more wisdom is needed to deal with the problem of over-capacity. On one hand, China needs to maintain its international competitiveness in manufacturing,manufacturing; on the other hand, it needs to resolve the problem of over-capacity. She believed that reducing over-capacity needs to take national strategic layout into account and work on the following aspects. Firstly, reducing over-capacity needs to be closely linked with the newly-formed industrial layout, regional layout, trade layout and market layout. Also, it should combine the advantages of trade and manufacturing.

Wen Xianjun argued that resolving the problem of electrolytic aluminum over-capacity requires effective control of capacity expansion, standard improvement, elimination of outdated capacity, and increased use of aluminum in transportation, electricity and construction industry. Furthermore, he reckoned that right now it is the best opportunity to enlarge the application of aluminum based on three reasons. Firstly, China needs a large amount of aluminum. Secondly, the current price of aluminum is low and lastly, the aluminum will become the secondary resource after using it in China.

Gao Zhi believed that the overall capacity of the cement industry is excessive and information asymmetry is the main factor for duplicated construction of cement production. She provided four suggestions to resolve the problem of over-capacity, which are to strengthen macro-regulation and , to restrain capacity expansion, to improve supporting policy and , to establish long-term mechanism, to increase the elimination of outdated capacity and reduce total production, and to advance industrial upgrading and guide consumption upgrading.

At the end of the talk, experts took questions from the audience and media.

Researchers and representatives from corporate member companies of CCIEE, other research institutions and the media attended the meeting.