The first quarter has witnessed continuous progress in structural reform in the Chinese industries, with the growth of energy guzzling industries slowing down and key industries increasing their energy use efficiency, making new progress in energy saving and emission reduction, said Zhu Hongren, Deputy Head of Bureau of Economic Operation, NDRC on the 29th of April.
Some energy guzzling industries have been growing at a low speed, with their export or growth in export continuing to fall, Zhu Hongrun told the press conference on the first quarter economic operation. In the first quarter, productions in crude steel and electrolytic aluminum have grown by 8.6% and 7.9% from the same period last year, representing a fall in growth rates of 13.7% and 28.7% respectively. Exports in steel, yellow phosphorus and plate glass have fallen by 19.3%, 7.7% and 12.9% respectively.
In addition, the national coal consumption rate of power supply in the first quarter was 346 grams per KWH, down 9 grams per KWH from the same period last year. In key steel factories, per ton steel overall energy consumption rate fell by 0.2%, per ton steel new water consumption rate fell by 5.6%.
Although the first quarter has witnessed a fall in the production growth rate of energy guzzling products, some industries have enjoyed accelerated investment. Investment into iron and steel smelting and building materials have grown by 22.4% and 49.2%, representing an increase of 8.9% and 5.4% respectively.
Zhu Hongren said, due to the long term structural contradiction and a rough growth model, there has been no fundamental change in the situation where economic growth has been over-relying on energy and resource consumption. When affected by the sustained price hike, some energy guzzling industries are still relying on rapid increase in investment, making the condition of energy saving and emission reduction very severe indeed.
2008 is a crucial year to meet the energy reduction target set in the 11th five-year plan. More work needs to be done in energy saving and emission reduction, said Zhu Hongren. Energy saving and emission reduction work needs to be strongly implemented in key industries, key businesses and key fields. Projects with low production capacity and those in violation with industrial policies should be closed down rapidly, establishing a mechanism to withdrawing businesses with backward production capacity. Meanwhile, the government will strictly control the expansion of high pollution and high energy consumption industries so the management of market access is tightened. The measure is to avoid the excessive growth in export of high pollution, high energy consumption and high resource consumption products.