A Yichang government website reported that a series of stringent measures are to be announced that will bring together the powers of various state departments to reduce production levels in nine industries deemed to be backward, highly polluting and suffering from overcapacity. The nine offending sectors are power generation, coal, iron and steel, cement, non-ferrous metals, coke, paper, leather and dyeing.

The fact that so many departments, including the State Development and Reform Commission, the Ministry of Finance, the Ministry of Industry and Information and the central bank, are working together shows the determination of the central government to solve the problem

The measures include: blocking the provision of new land for expansion projects in these industries; restraining market demand for high-consumption and high-emission products; banning exports; and setting elimination targets as part of a local government’s performance evaluation. Other measures may include an industry premium on the use of electricity, water and natural gas. A new environment tax could also be levied. Financial institutions will not be allowed to provide new lines of credit.

Local governments could receive severe penalties for not meeting targets. They include a slow-down of national investment projects in the area and a suspension of environmental evaluation, verification and approval processes for local projects. Punishments for companies could involve having their production and waste disposal licences revoked and their power supply cut off.