Take Positive and Stronger Measures to Promote Steady

and Moderately Rapid Development of Industry

Ministry of Industry and Information Technology

Since the second half of this year, the international economic environment changes have imposed negative impact on Chinese economy. The industrial growth has experienced slowdown on a monthly basis. Large-scale industrial added value decreased from 16% in June to 8.2% in October, and kept declining in November. Enterprises in some industries encountered difficulties in production and operation.

The CPC Central Committee and the State Council paid due attention to the development of the industry sector in the new environment. From November 13 to December 1, leaders of the State Council have chaired four meetings to study issues in order to promote healthy development of the light industry, textile, non-ferrous metals, metallurgical, petrochemical, automotive, shipping and electronic information industries. From November 19 to 26, the Executive Meeting of the State Council chaired by Premier Wen Jiabao produced six measures to promote healthy development of the textile industry and six solutions to address difficulties of enterprises. The Central Economic Conference further clarified guidance principles and policy measures to promote steady and moderately rapid industrial development.

The top priority of the current economic endeavor is to reverse economic slowdown and promote steady and moderately rapid growth. The key is industry and enterprise is a heavy task. The Ministry of Industry and Information Technology prioritized maintaining growth and promoting development and worked vigorously with relevant agencies to implement the measures according to the deployment and arrangement of the CPC Central Committee and the State Council.

1. Implement policy measures to support key industries further reduce tax and tariff on the enterprises to save cost; increase credit support to help enterprises with financing; launch a series of technical transformation projects to upgrade the industry; encourage and support mergers and enterprise restructuring to improve their anti-risk capability and international competitiveness; fully explore domestic market potential, particularly the rural market, to stimulate demand and production; make greater efforts to expand export, stabilize and further explore the international market; improve the national reserve and commercial reserve mechanisms, increase reserves of key resources and products.

2. Vigorously implement technical upgrading of enterprises promote technical transformation due to its new technology, small investment, short cycle, quick return and high efficiency; draft opinions on further increase of enterprise technical upgrading investment to specify direction and priorities of the enterprise technical reform; set up a special fund from the central finance budget for enterprise technical upgrading; guide banks and social capital to invest in technical upgrading. Through technical upgrading to further enhance overall quality and competitiveness of Chinese industry.

3. Accelerate industry restructuring and transformation of development mode work vigorously to draft plans to rejuvenate nine key industries: iron and steel, non-ferrous metals, petrochemical, automotive, shipbuilding, equipment manufacturing, light industry, textiles and electronic information; follow the implementation of policy measures; work out guidance on industry restructuring and promote mergers and restructuring in key industries such as iron and steel, non-ferrous metals and construction materials; encourage enterprises with competitive edge to get bigger and stronger; continue to promote proprietary innovation, energy saving, consumption reduction, efficiency enhancement and brand building; accelerate elimination of outdated production capacity.

4. Increase support for SME development speed up the credit guarantee system for SMEs to effectively address their difficulties in financing; make greater efforts in SMEs Informatization Promotion Project, the public service platform and credit system building in order to create a sound environment for enterprises to adapt to market changes; support SMEs to cooperate with large enterprises to achieve specialized, refined, unique and innovative development and implement industry cluster demonstration projects.

5. Strengthen guidance and coordination on industry and enterprises guide industry associations to launch industry self-discipline at the technical and implementation level, improve industry management and creditability building; drafting industry rules and regulations to further regulate industry and enterprise behavior to maintain a sound market order; guide enterprises to increase risk awareness and focus on self improvement, proprietary innovation, product mix optimization and product quality enhancement to increase their capability of market adaptation and exploration; supervise and guide enterprises to shoulder their social responsibility.

6. "Industry Promotes Agriculture", support work related to agriculture, rural areas and farmers intensify supervision and guidance on agricultural machinery industry by providing multi-functional, intelligent and economical agricultural machinery; to secure agricultural materials supply and food production safety, continue to organize production and supply of agricultural materials such as fertilizer, pesticide and plastic sheeting, support consumer goods industry with agricultural and livestock products as the main raw materials; promote the reform and development of SMEs in the rural area and guide them to move to the Industrial Parks.

7. Make vigorous efforts to promote integrated development of informatization and industrialization start from product R&D, product manufacturing, market circulation, enterprise integrated management, staff training and development of production-oriented service industry to enhance integration of information technology to the traditional industries; develop automotive electronics, machine tool electronics, medical electronics and embedded software; speed up application of information technology and do a good job in the pilot and demonstration projects on information technology application.

8. Make earnest efforts in industrial coordination pay close attention to the changes of international economy and finance and the impact on China, strengthen operation monitoring and elements security coordination, do a good job in forecast, prevention, early warning and information guidance, give timely analysis of the new situation and problems in the industry economic operation, actively promote, support and guide introduction of the policies on taxation, credit, price, import and export for sustainable industrial development; make great efforts in emergency management and production safety in the industrial sector and improve the industrial management.