Administrators have already drafted a plan to ease over-capacity that troubles several industries including steel, cement and flat glass, officials said. Strict control would be exercised over new projects in these industries and any irregularity or violation would see severe punishments.

According to experts, the key to solve the over-capacity problem is to transform the development mode into a quality and efficiency-based one and close down backward producers by supporting superior enterprises in acquiring those in financial difficulties. Adjustment and solution scheme directed towards the problem are also in urgent need to coordinate the industrial development, environment protection, land utilization and financial policy.

The National Development and Reform Commission has already named steel, cement, flat glass, polycrystalline silicon, and wind power industries as the focus of adjustment.

Ministry of Industry and Information Technology has already assessed the work progress in Yunnan, Anhui, Jiangxi and Hainan Province, which is viewed as an active move of washing out backward capacity.

“Chinese Party Central Committee and State Council both pay high attention to this and regard it as an important step to solve the over-capacity problem,” says Zhu Hongren, chief engineer of Ministry of Industry and Information Technology.

Another assessment will be held in the second quarter of this year.