● Steel: No longer approves and supports steel projects with new or expanded production capacity. ● Cement: Suspend construction of cement projects that have not been started before September 30, 2009. ● Flat glass: Completely phase out “Ping Lafa” within three years (inclusive) (Law) Backward flat glass production schedule ● Coal chemical industry: Approval of coke and calcium carbide projects for pure expansion of production capacity will be stopped in the next three years ● Polysilicon: Before 2011, polysilicon production capacity with an overall power consumption of more than 200 kWh/kg will be eliminated. ● Wind power equipment: principle No longer approved or documented on the construction of a new complete machine factory on the 29th, the Chinese government network announced the State Council forwarded the provinces, regions, municipalities and ministries, "to suppress some industries overcapacity and redundant construction to guide the healthy development of the industry, a number of opinions" (hereinafter referred to as "opinion").

The "Opinions" pointed out that at present the contradictions of overcapacity in China's steel, cement, plate glass, coal chemical industry, polysilicon, wind power equipment, electrolytic aluminum, shipbuilding, and soybean crushing industries are very prominent, in order to consolidate and develop the current economic stabilization trend. Accelerating the structural adjustment and guiding the orderly development of new industries requires that excess production capacity and redundant construction must be suppressed as soon as possible so as to achieve a sound development of the industry.

The "Opinions" put forward specific policy guidance for the above industries.

Regarding the iron and steel industry, the Opinions point out that we must make full use of the current market reversal mechanism to accelerate the structural adjustment and technological progress and promote the iron and steel industry by eliminating backwardness, joint reorganization, and relocation of urban steel plants on the premise of reducing or not increasing production capacity. Realize the transition from big to strong. We will no longer approve and support steel projects that simply build or expand capacity.

Regarding the cement industry, the "Opinions" pointed out that all cement projects that have not been started before September 30, 2009 will be suspended for construction and will be carefully cleaned up. All provinces (autonomous regions and municipalities) must formulate a timetable for the complete elimination of backward production capacity within three years as soon as possible.

In the flat glass industry, the existing projects under construction and unstarted projects are carefully cleaned up. All proposed glass projects are not allowed to be filed in all places. All provinces (autonomous regions and municipalities) must formulate a timetable for obsolete flat plate glass production capacity in the past three years.

In the coal chemical industry, the "Opinions" require that in the next three years, the approval of coke and calcium carbide projects with only the expansion of production capacity be stopped, and the construction of non-conformity with the conditions for access to coking industry (revised in 2008) and the access conditions for the calcium carbide industry (2007) (Amendment)" coking and calcium carbide projects.

We will strictly control new polysilicon projects in areas with energy shortages and high electricity prices. By 2011, we will eliminate polysilicon production capacity with an integrated power consumption of more than 200 kWh/kg.

In principle, the new wind power equipment manufacturing plant will no longer be approved or put on record. In the future, it will focus on supporting the research and development of key components and industrialization demonstrations such as wind turbines, bearings and control systems with 2.5 MW or more, and improving the quality control system.

In addition, in the next three years, in principle, new or expanded electrolytic aluminum projects will no longer be approved, and applications for new shipyards and slipway projects will no longer be accepted, and the expansion projects for existing shipbuilding companies' docks and slipways will be suspended.

In order to achieve the above objectives, the Opinions propose that strict market access will be adopted in the future, environmental supervision will be strengthened, and financial policies with protection and control in place will be implemented: those that fail to meet the adjustment and revitalization plans for key industries and related industrial policies will not be approved according to stipulated procedures. Or approved projects, all financial institutions shall not issue loans. The loans that have been issued shall be corrected in an appropriate manner and may not be financed through corporate bonds.

The Opinions also require local governments to take a good approach to land, environmental protection, and credit, and actively promote structural changes and changes in development methods. They will cause serious damage to work that violates state land, environmental laws, regulations, and related industrial policies, and will result in serious dereliction of duty or mistakes. Or acts of bad influence should be held accountable.