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China has again promised to curb excess investment in its key industries as the government seeks to prevent a reckless investment spree from spoiling economic recovery.
The government will withhold approval for and curb lending to projects that don't conform to state guidelines in industries such as steel, cement and wind power equipment, according to a statement issued jointly yesterday by 10 ministries, including the National Development and Reform Commission, the Ministry of Finance, the land ministry and the banking regulator.
The rules also banned new projects in target sectors, tightened the offer of land for such investment and raised environmental and efficiency standards.
The guidelines are the latest effort to address government concern about overcapacity in less than a month. The State Council last month issued a directive to rein in overcapacity in industries including steel, glass and aluminum to prevent the government's stimulus package and record bank loans from spurring excess investment.
"While the government is ensuring economic growth, we are also concerned about overcapacity in some industries," Xiong Bilin, deputy director of the industry department under the NDRC, told a press briefing.
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