As the second-largest economy in the world, the policies and plans that the China government announced at the Fourth Session of the 12th National People’s Congress perhaps provide some hints for the development trend of what is now the second-largest industrial gas market.
The GDP of China in 2015 is reported to be RMB 67.7 trillion, representing a year-on-year increase of 6.9%. Premier LI Keqiang stated in his Annual Report of the Work of the Government, delivered at the Congress, that this was not achieved without difficulties because the acceleration of the world economic growth was the slowest in the past six years – and the acceleration of world trade was even worse.
Regarding the issue of over-capacity, outdated production capacity of more than 90 million tonnes of iron and steel, 230 million tonnes of concrete, 76 million weight boxes of flat glass, and more than one million metric tons of electrolytic aluminium have been cut in the past three years alone.
Further cuts in the production capacity of iron and steel and other materials is expected. Until now, 150 iron and steel mills, state-owned or independent, large and small, have been reported to have shutdown. It is reported that in addition to the 90 million tonnes production capacity mentioned above, an additional 100 million to 150 million tonnes of steel production capacity will be cut in the coming years.
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