China's State Council urged Wednesday in Beijing to reduce the superfluous production capacity in some industries and avoid random investment and repeated construction through industrial readjustment.

Effective handling of the excess production capacity is a key issue at present in keeping sustained economic development, said a State Council executive meeting presided over by Premier Wen Jiabao.

The restructuring of state-owned enterprises is targeted at incubating good-performing companies while eliminating bad-performing ones, the State Council said.

The new requirements for industrial readjustment call for higher and stricter standards governing technical and quality control, production safety and environmental protection in a bid to enhance industrial upgrading, energy-saving and environment protection.

The State Council encouraged the deepening of reform in the investment and financial sectors and bringing the role of enterprises and markets into full play.

The executive meeting also stressed the improvement of state policies on taxation, loans and credit, land management and foreign trade, in order to channel funds into best utilization.

The State Council asked various localities to implement the requirements for industrial readjustment in line with current state policies, saying it will comprehensively enhance the quality and competitiveness of Chinese enterprises and transform the economic growth mode.

The priorities of the readjustment include modern agriculture, infrastructure construction, advanced manufacturing, high technologies, the service sector, environment-friendly enterprises, energy-saving and optimizing of industrial structures.

Source: Xinhua