Posts tagged ‘National Development and Reform Commission’

26/04/2016

China Bans Some New Coal Power Plants – China Real Time Report – WSJ

China Bans Some New Coal Power Plants A coal-fired power plant in Shanxi, China. Beijing has announced a ban on new coal plants in areas with surplus power supply.

Beijing has announced a ban on new coal plants in areas with surplus power supply.

China’s government is banning construction of new coal-fired power plants in areas with surplus power supply, a move that could weigh on already-struggling coal markets. As WSJ’s Brian Spegele reports:

The new measures outlined Monday by China’s top economic planner, the National Development and Reform Commission, underscore the central government’s deep concern with overcapacity across China’s economy, a result of weakening industrial demand as growth slows.

Beijing has previously said it aimed to curb thermal power overcapacity; analysts said the fact that it now came from an official NDRC communiqué was the clearest signal yet that it won’t tolerate new coal capacity in regions that already have excess supply.

Weaker demand for coal inside China could ultimately lead to higher exports, which would exacerbate the huge supplies of coal sloshing around global markets. The higher supplies could drive down global benchmark prices and hit the bottom lines of major U.S. and international coal producers.

The global commodities downturn has proven particularly tough on global coal companies. St. Louis-based Peabody Energy Corp. and Arch Coal Inc. are among the large U.S. miners to file for chapter 11 bankruptcy protections in recent months. The U.S. sector has shed 31,000 jobs since 2009.

Source: China Bans Some New Coal Power Plants – China Real Time Report – WSJ

29/02/2016

China expects to lay off 1.8 million workers in coal, steel sectors | Reuters

China said on Monday it expects to lay off 1.8 million workers in the coal and steel industries, or about 15 percent of the workforce, as part of efforts to reduce industrial overcapacity, but no timeframe was given.

It was the first time China has given figures that underline the magnitude of its task in dealing with slowing growth and bloated state enterprises.

Yin Weimin, the minister for human resources and social security, told a news conference that 1.3 million workers in the coal sector could lose jobs, plus 500,000 from the steel sector. China’s coal and steel sectors employ about 12 million workers, according to data published by the National Bureau of Statistics.

“This involves the resettlement of a total of 1.8 million workers. This task will be very difficult, but we are still very confident,” Yin said.

For China’s stability-obsessed government, keeping a lid on unemployment and any possible unrest that may follow has been a top priority.

The central government will allocate 100 billion yuan ($15.27 billion) over two years to relocate workers laid off as a result of China’s efforts to curb overcapacity, officials said last week.

Source: China expects to lay off 1.8 million workers in coal, steel sectors | Reuters

15/02/2016

Home on the Range, Chinese Style – China Real Time Report – WSJ

It’s a small step in the right direction, driven more by necessity than enlightened policy.

That’s the view from economists on China’s move this year to put forward a range for its economic growth target rather than a single number. The head of the National Development and Reform Commission, China’s top economic planning agency, said early this month that the 2016 target is likely to be “6.5% to 7%,” the first time in recent memory that China has used such a band. The target is set to be officially released early next month when China’s parliament convenes.

For decades, Beijing beat its annual growth targets without breaking a sweat. More recently, as growth decelerated faster than expected, it has faced growing difficulty hitting its number, so a range provides more wiggle room.

This follows Beijing’s decision to add an “about” to both its 7.5% target in 2014 and its 7% target last year. The adjective proved handy when the actual growth figures wound up falling short both times.

The risk this year, economists say, is that even a 6.5% to 7% target may be too high, heaping pressure on local officials to artificially stimulate growth in ways that increase debt and blunt reform initiatives.

This is also the year that China sets a growth target for the coming five years that’s expected to be 6.5%, in line with a Communist Party goal of doubling per capita income by 2020 over 2010 levels. This benchmark also may be high, analysts said, given China’s many structural problems and so-far limited appetite for reform.

“If they really stick to the 6.5% target by adopting unsustainable policies, throwing up more credit, they face a bigger problem with debt down the road,” said Fitch Ratings Inc. analyst Andrew Colquhoun. “Many emerging market problems in the past have happened when countries veer off and start to believe their own hype on what growth is possible.”

Source: Home on the Range, Chinese Style – China Real Time Report – WSJ

18/06/2015

U.S. tech firm Cisco to invest $10 billion in China expansion | Reuters

Cisco (CSCO.O) plans to invest more than $10 billion in China along with local business partners over the next several years, the U.S. network equipment maker said on Wednesday, as it seeks to shore up its position against strong domestic rivals.

A visitor walks past a Cisco advertising panel at the Mobile World Congress in Barcelona February 27, 2014. REUTERS/Albert Gea

Cisco, the world’s biggest maker of switching equipment and routers that run the Internet, announced the investment plans following high-level meetings between top executives and Chinese Vice Premier Wang Yang and other government agency leaders.

A statement issued by the Silicon Valley company provided the broad outlines of how it planned to invest but did not detail any specific spending or timelines for doing so.

It said in a statement it had signed a Memorandum of Understanding (MoU) with China’s state planner, the National Development and Reform Commission, to expand investment.

This will be used to fund innovation, equity investment, research and development and job creation, Cisco said.

It also signed an MoU with the Association of Universities (Colleges) of Applied Science (AUAS) to advance technical training of information and communications engineers.

The company said it will invest in a four-year network engineer training program with 100 universities and colleges of applied science recommended by AUAS.

Cisco is looking to capitalize on initiatives promoted by the Chinese government including “China Manufacturing 2025”, “Internet+” and its strategy to deliver more services as cloud-based Internet services.

The move comes as pressure has grown on foreign technology firms in the world’s biggest Internet market as Beijing has moved to promote domestic technology suppliers it says are needed to protect state secrets and data.

Earlier this year, a Reuters analysis found Cisco was among U.S. technology firms which had been dropped from state procurement lists in recent years.

Cisco and arch-rival Huawei Technologies [HWT.UL] of China have been battling each other for a decade. Political controversies over ties to their respective governments have raised questions about their futures on each other’s lucrative home turf.

In 2013, John Chambers, Cisco’s long-serving chairman and chief executive, acknowledged that security controversies had stymied the company’s moves to expand in China.

Chambers took part in the recent meetings with Chinese government officials along with CEO-Designate Chuck Robbins, who is scheduled to take over as chief executive in July. Chambers will remain as executive chairman of the company.

via U.S. tech firm Cisco to invest $10 billion in China expansion | Reuters.

20/05/2015

China Unveils Blueprint to Upgrade Manufacturing Sector – China Real Time Report – WSJ

China unveiled an ambitious plan to enhance the competitiveness of its manufacturing sector by encouraging innovation and raising efficiency in an effort to boost economic growth. As the WSJ reports:

The blueprint, titled “Made in China 2025,” comes as China’s factories are struggling with sluggish demand, increasing competition from other developing economies and a slowing domestic economy.

The manufacturing sector is facing new challenges: bigger constraints from the environment and resources, rising labor costs and a notable slowdown in investment and exports, the State Council, or cabinet, said on the main government website Tuesday.

“The key to creating a new driver of economic growth…lies in the manufacturing sector,” it said.

The government vowed to boost 10 high-technology industrial sectors including robotics, aerospace, new-energy vehicles and advanced transport.

via China Unveils Blueprint to Upgrade Manufacturing Sector – China Real Time Report – WSJ.

11/03/2015

Nuclear Power Gains Traction in China – China Real Time Report – WSJ

China’s government is breathing life into its nuclear sector with the approval of the country’s first new reactors in more than two years. As the WSJ’s Brian Spegele reports:

The National Development and Reform Commission, China’s top economic-planning agency, approved construction of two reactors in the country’s northeastern Liaoning province by state-owned China General Nuclear Power Corp., according to a statement to the Hong Kong Stock Exchange by the company’s listed unit, CGN Power Co.

China is the world’s biggest nuclear growth market. The country operates 24 reactors currently. A further 25 are under construction, out of 68 globally, according to the IAEA. China doesn’t disclose total spending, but based on the cost of reactors, its buildout represents tens of billions of dollars in potential new business for Chinese and foreign companies over the coming decade.

via Nuclear Power Gains Traction in China – China Real Time Report – WSJ.

10/12/2014

Former top planning official jailed for life in China over graft | Reuters

The former deputy head of China’s top planning agency was jailed for life on Wednesday over a bribery scandal that exposed graft at the highest levels of China’s government, and ensnared several companies including Toyota Motor Corp.

Liu Tienan, then deputy chairman of China's National Development and Reform Commission (NDRC), attends a news conference in Beijing in this February 27, 2009 file photograph. Liu, a deputy chairman of China's top planning agency, the National Development and Reform Commission (NDRC), is under investigation for suspected ''serious discipline violations'', state media said on 12 May, 2013, REUTERS/Stringer/Files

The sentence, handed down by a court just outside of Beijing, capped the downfall of Liu Tienan, who was sacked as deputy head of the National Development and Reform Commission (NDRC) last year, a position that carries ministerial-level status.

Liu was the first ministerial-level official to face an investigation after Xi Jinping became Communist Party head in late 2012 and launched the most aggressive anti-graft campaign China has seen in decades.

via Former top planning official jailed for life in China over graft | Reuters.

20/09/2014

China approves plan to combat climate change – China – Chinadaily.com.cn

The Chinese central government on Friday approved a plan that maps out major climate change goals to be met by 2020.

The State Council, China’s cabinet, gave a green light to the plan, which was proposed by the National Development and Reform Commission (NDRC), the country’s economic planner. A statement released on the State Council’s website urged the NDRC to carry out the plan.

China has pledged to reduce its carbon emission intensity, namely emissions per unit of GDP, by 40 percent to 45 percent by 2020 from the 2005 level. It will also aim to bring the proportion of non-fossil fuels to about 15 percent of its total primary energy consumption.

Other targets include increasing forest coverage by 40 million hectares within the next five years.

The government will speed up efforts to establish a carbon emission permit market, under the plan, which also calls for deepened international cooperation under the principles of “common but differentiated responsibilities,” equity and respective capability.

The State Council said local governments and departments at all levels should recognize the significance and urgency in dealing with climate change and give higher priority to action on this issue.

China’s release of the action plan came just before a climate summit to be held at UN Headquarters in New York on Tuesday. Chinese Vice Premier Zhang Gaoli will attend.

Xie Zhenhua, deputy chief of the NDRC and the country’s top official on climate change, told a press conference that the plan was concrete action by China to participate in the global process to tackle climate change.

By the end of last year, China had reduced carbon dioxide emissions per unit of GDP by 28.56 percent from 2005, which was equivalent to saving the world 2.5 billion tonnes of carbon dioxide emissions, Xie said.

At the end of 2013, China’s consumption ratio of non-fossil energy to primary energy stood at 9.8 percent. Forest growing stock had increased by 1.3 trillion cubic meters from 2005 to two trillion cubic meters, seven years ahead of schedule, according to the official.

In the first nine months of 2014, China’s energy consumption per unit of GDP dropped by 4.2 percent year on year and carbon intensity was cut by about 5 percent, both representing the largest drops in years, he said.

As a developing country, China is the world’s largest greenhouse gas emitter. With the plan, the country has showed its confidence in achieving its green goals.

via China approves plan to combat climate change – China – Chinadaily.com.cn.

05/03/2014

* China to ‘declare war’ on pollution, premier says | Reuters

China is to “declare war” on pollution, Premier Li Keqiang said on Wednesday at the opening of the annual meeting of parliament, with the government unveiling detailed measures to tackle what has become a hot-button social issue.

Chinese Premier Li Keqiang gives an address during a news conference with French Prime Minister Jean-Marc Ayrault (not pictured) in the Great Hall of the People in Beijing December 6, 2013 file photo. REUTERS/Mark Ralston/Pool

It is not uncommon for air pollution in parts of China to breach levels considered by some experts to be hazardous. That has drawn much public ire and is a worry for the government, which fears any discontent that might compromise stability.

“We will resolutely declare war against pollution as we declared war against poverty,” Li told the almost 3,000 delegates to the country’s largely rubber-stamp legislature in a wide-ranging address carried live on state television.

Curbing pollution has become a key part of efforts to upgrade the economy, shift the focus away from heavy industry and tackle the perennial problem of overcapacity, with Li describing smog as “nature’s red-light warning against inefficient and blind development”.

“This is an acknowledgement at the highest level that there is a crisis,” said Craig Hart, expert on Chinese environmental policy and associate professor at China’s Renmin University.

“Their approach is going to have to be pro-economy. I think they will pump money into upgrading plants. This could be another green stimulus although it is not being packaged that way.”

China has published a series of policies and plans aimed at addressing environmental problems but it has long struggled to bring big polluting industries and growth-obsessed local governments to heel.

Li said efforts would focus first on reducing hazardous particulate matter known as PM 2.5 and PM 10 and would also be aimed at eliminating outdated energy producers and industrial plants, the source of much air pollution.

China will cut outdated steel production capacity by a total of 27 million tonnes this year, slash cement production by 42 million tonnes, and also shut down 50,000 small coal-fired furnaces across the country, Li said.

The 27 million tonnes of steel, equivalent to Italy’s production capacity, amounts to less than 2.5 percent of China’s total, and industry officials have warned that plants with another 30 million tonnes of annual output went into construction last year.

The targeted cement closures amount to less than 2 percent of last year’s total production.

The battle against pollution will also be waged via reforms in energy pricing to boost non-fossil fuel power. Li promised change in “the way energy is consumed and produced” through the development of nuclear and renewables, the deployment of smart power transmission grids, and the promotion of green and low-carbon technology.

The National Development and Reform Commission (NDRC), the country’s economic planner, said in its report that new guidelines would be issued on relocating key industries away from urban centers to help tackle smog.

via China to ‘declare war’ on pollution, premier says | Reuters.

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13/02/2014

* China spends billions on rural education – Xinhua | English.news.cn

The Chinese central government has invested 61.8 billion yuan (10.1 bln U.S. dollars) improving schoolhouses and educational facilities in rural areas over the past four years.

Since 2010, 39.9 billion yuan from the central budget has been used in schoolhouse renovation and 21.9 billion yuan in educational equipment, said Liu Limin, deputy minister of education, at a press conference on Thursday.

Money was also used to build cafeterias at schools in 699 “poor” counties, after media reports exposed that some students in remote villages have to cook for themselves during study time, according to Liu.

The deputy minister revealed that the ministries of education and finance and the National Development and Reform Commission jointly worked out a plan on improving the level of education in poor areas at the end of last year.

The plan aims at completing six major tasks in three to five years, including improving basic school facilities like teaching equipment, sports grounds and toilets, promoting digital teaching methods and improving the quality of teaching staff, according to Liu.

He also said that the ministry will try to ensure better compulsory education and care for 23 million rural left-behind children at school age, who stayed alone or with their relatives while their parents go to cities to make a living.

via China spends billions on rural education – Xinhua | English.news.cn.

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