Eleven sectors found to have developed severe over capacity would be put under control according to sources with the State-owned Assets Supervision and Administration Commission of the State Council yesterday.

The 11 sectors include iron and steel, automobile, cooper, power, coal, electrolytic-aluminum, cement, ferroalloy, coke, textile and calcium carbide.

The existing production capacity of the iron and steel sector, for example, has surpassed the market demand by 120 million ton. And electrolytic-aluminum is oversupplied by 2.6 million tons. Only 40 percent of the production capacity for ferroalloy is in operation.

The government will constrain the production and capacity of the 11 sectors.

Market access to the 11 sectors will be stricter than before. Outmoded production will be phased out. Special tax policy and other administrative measures will also be adopted to curb the over capacity.

The National Development and Reform Commission has made clear that the production capacity of steel will be controlled within 400 million ton and the backward capacities of 100 million tons of iron smelting and 55 million steel will be stopped. Similar limits will be proposed for the other sectors.

By People��s Daily Online