NPC Deputy Zhang Jianxing

　　Zhang Jianxing said that Guofa [2009] No. 38 pointed out the direction for the development of China's cement industry, namely strictly controlling new additions, eliminating backward capacity, and pursuing technological innovation. However, the implementation results have not been entirely satisfactory. In 2011, China's total cement production capacity reached 2.7 billion tons, with an oversupply of about 24%, and overcapacity in some regions was even more severe. To this end, Zhang Jianxing made the following suggestions:

　　1. Eliminate backward production capacity. In accordance with the spirit of Guofa [2009] No. 38, implement an equivalent replacement system for new cement capacity, and completely eliminate backward capacity by September 30, 2012, according to the timetables set by each province and municipality. At the same time, use economic, legal, and necessary administrative means to ensure that the elimination of backward capacity is completed on schedule.

　　2. Strictly prohibit the commencement of new construction projects. Cement capacity is already severely oversupplied. For new projects that do not comply with relevant national policies and requirements, construction must be strictly prohibited to prevent further overcapacity.

　　3. Support technological innovation in the cement industry. Increase research and development efforts for advanced technologies, processes, and equipment, accelerate the use of high-tech and advanced applicable technologies to transform and upgrade traditional industries, and support large enterprises in projects such as urban waste and sludge treatment and denitrification through policies, financing, and taxation, building a number of demonstration enterprises.

　　4. Support the restructuring and integration of large enterprises. The merger and reorganization of large enterprises helps improve industrial concentration and management levels. Supporting large enterprises in capacity replacement and in building logistics and production bases will help promote the healthy development of China's cement industry.

　　5. Guarantee resource allocation for large enterprises. Because large enterprises have relatively higher process levels and management levels and relatively stronger comprehensive resource utilization capabilities, capable large enterprises should be given priority in the allocation of resources such as land, mines, and electricity.

　　6. Improve cement quality standards. Abolish 32.5-grade cement, raise grade requirements, ensure building quality, and prevent redundant construction.