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Home , Light industry

Light Adjustment and Revitalization Plan

Guo Fa [2009] No. 15

The light industry undertakes the important responsibility of market booming, increase of exports, job expansion, and the “Three Rurals”, and is an important industry in the national economy, crucial to the development of economy and society. In order to respond to the international financial crisis, carry out the overall requirements of maintaining growth, expand domestic demand and restructuring proposed by the CPC Central Committee and the State Council, guarantee the stable development of the light industry, accelerate structural readjustment and motivate industrial upgrading, hereby specifically worked out this planning as the action plan to take comprehensive measures for the light industry. The planning period is 2009 to 2011.

I. Status quo and situation of the light industry

Since entering the 21st century, China's light industry has been growing rapidly. Both the enterprise size and actual strength have been obviously increased, industry competitiveness is continuously enhanced, benefiting employment and farming. In 2008, China's light industry realized the added value of RMB 2.6235 trillion, accounting for 8.7% of GDP, over 100 categories of products in such fields as home appliances, , , food, and hardware ranked the first in the world; total export reached USD 309.2 billion, accounting for 21.7% of the total export nationwide. The products are exported to more than 200 countries and regions. Products such as home appliances, leather, furniture, feather and bicycles account for over 50% of the international market. 35 million people are employed by the light industry. 70% of light industry and 50% of output value are related to the processing of agricultural by-products, to directly benefit more than 200 million farmers, having an irreplaceable function for the “Three Rurals” issue. Paper-making, household appliances, plastics, and leather have a strong ability of integration and by means of introducing and absorbing the and key equipment from abroad. China has become the great power for production and consumption of light industrial products.

However, in the course of instant development, the light industry also faces the problems accumulated for a long period of time. Firstly, the indigenous innovation ability is insufficient. More export products are OEM, the attached value of products is low, and the key and equipment mainly depend on import. Secondly, the industrial structure urgently is to be adjusted. The productive capacity is mainly dispersed over the coastal areas, while the light industry in the middle and west areas is undeveloped. The export market is mainly concentrated in Europe, USA and Japan. The diversified structure is not yet formed. Many products are low and middle-end rather than high quality and high added value. The low level duplicate and blindly expansion are very serious. Thirdly, the task for energy-saving and -reduction is tough. The emission of chemical oxygen demand (COD) accounts for 50% of the total industrial discharge nationwide. The waste water effluent accounts for 28% of total industrial wastewater discharge. Fourthly, the product quality-related problems are serious. The product quality guarantee system is not yet fully established and the enterprise's quality safety awareness is weak, and food safety-related accidents occur from time to time.

Since the second half of 2008, China's light industry has been seriously affected by the international financial crisis. The market supply and demand from both home and abroad are over balanced, and the product inventory keeps long in stock. The enterprises face difficulties in financing, so that the production operations face difficulties, and the stable development of light industry is seriously affected. China's light industry has a high degree of general adoption of the market principle and strong adaptive capacity, and products have comparative advantage in the international market. The further expansion of domestic demand offers the broad market for the growth of light industry. The need is to take full advantage of the market mechanism and take positively comprehensive measures to realize the adjustment and revitalization of the light industry.

II. Guiding ideology, basic principles, and targets

(I) Guiding ideology

Completely implement the spirit of National Congress of CPC and take the Deng Xiaoping Theory and “Three Represents” as guidance to carry out the Scientific Outlook of Development, in accordance with the overall requirements for keeping growth, enlarging domestic demand and adjusting the structure, take comprehensive measures to expand market demand from both town and country as well as consolidate and develop the international market to keep the stable growth of light industry. Through accelerating indigenous innovation and implementing technical renovation, carry forward the construction of independent brands and phase out backward productive capacity. Spare no efforts on the structural adjustment and industry upgrading of the light industry, focus the new round of development of light industry on ecology, quality safety, and cycling economy, further enhance the role of the light industry as the mainstay industry for flourishing market, enlarging employment, and serving the “Three Rurals” place as a pillar industry.

(II) Basic principles

1. Actively expand domestic demand to stabilize the international market. Strengthen the guidance of consumption policy, increase the effective supply, and stimulate the consumption of light industrial products. Consolidate the traditional export market and develop emerging markets in the world.

2. Emphasize major industries and cultivate backbone enterprises. Be focused on the adjustment and revitalization of the industries which have high degree of association, strong capability to enlarge the employment, remarkably effect on driving the consumption and obvious effect on structural adjustment. Support backbone enterprises with good product quality, strong marketability, and independent brands to gain ground.

3. Support small and medium-sized enterprises to stimulate labor employment. Undertake actively financing and credit guarantee policies to support small and medium-sized enterprises with good performance and growth potential, so that the role for enlarging employment could be given full play.

4. Accelerate technological progress to phase out the backward productive capacity. Improve enterprise’ indigenous innovation ability to boost the localization of equipment and industrialization of key technology. Accelerate the technical renovation in such fields as , home appliances, plastics and lighting fittings, eliminate the backward technology and equipment with high energy- consuming, high water-consuming, serious pollution and low efficiency, and strictly control newly added productive capacity.

5. Guarantee product quality and intensify food safety. Particularly strengthen the quality control and improve the standards and examining system for the human health-related industries such as food, furniture, and decoration, etc. Crack down on illegal activities such as fake product-making to ensure product safety.

(III) Program objectives

1. Production to keep stable growth. As driven by the stabilization of export and enlargement of domestic demands, the production and of light industry grow steadily, so that the overall benefits of the industry are recovered. Around 3 million posts are newly added within three years.

2. Progress is made in indigenous innovation. Breakthroughs made in such key production technologies as the air-condition compressor with frequency conversion, new energy cells, new types of materials for agricultural use, and new types of energy-saving and environment-friendly illuminant. The indigenous level of equipment in the major industries is steadily increased. The indigenous development is been available for the middle-sized unit of high-speed paper machine equipment. The domestic content ratio of food equipment is improved by 60%.

3. Industrial structure is optimized. Progress is made in the reorganization of enterprises to form another 10 large-sized enterprise groups with the annual sales revenue of RMB 15 billion in the light industry. 100 special areas of light industry and industrial colonies are increased to harmonize the development of light industry in the east, middle and west areas. Around 100 independent brands are newly added.

4. Pollutant emission to be obviously reduced. By 2011, COD discharge ratio of the major industries to be reduced by 10%, namely, 255,000 tons shall be decreased as compared with those in 2007, among which the food industry is to reduce 140,000 tons; the papermaking industry is to reduce 100,000 tons; the leather industry is to reduce 15,000 tons; for the waste water effluent, 1.95 billion tons hereof is to be decreased as compared with those in 2007, reducing by 29%, among which, the food service industry is to reduce 1 billion tons; the papermaking industry is to reduce 900 million tons, and the leather industry is to reduce 50 million tons.

5. Substantial results to be made in the elimination of backward productive capacity. Phase out the backward productive capacity of over 2 -million-ton papermaking pulps; 30 million units of low energy efficiency freezers (including deep freezers); 30 million pieces of leather; 9 billion button-shaped mercury and alkali manganese cells; 600 million incandescent lamps; 1-million-ton alcohol; 120,000-ton gourmet powder and 50,000-ton citric acid.

6. Safety quality to be fully improved. Improve the standard system for the light industry and out and revise 1000 national and industrial standards. Producers to have qualified production licenses and improve the internal control system. Food manufactures with certain scale are be generally subject to GMP (Good Manufacturer’s Standards). Further improve the quality safety mechanism, and product quality is to be fully in accordance with laws and regulations and relevant standards.

III. Primary objective for adjustment and revitalization of the electronic

(I) Stabilize the domestic and overseas market. 1. Stimulate domestic consumption. Summarize the experience of the pilot “home appliances going to the countryside” to improve the system for logistics, and maintenance of home appliances in the rural areas. Accelerate special market construction in such fields as leather, furniture, hardware, home appliances, plastics, , tailoring mechanics and sugar refining, further bring the special circulation market into play, guide enterprises to carry out the deep cooperation to step up the exchange of market demand information, and encourage business enterprises to increase the scale of procurement and distribution of light industrial products.

2. Increase effective supply. Enrich the styles and of products, meet the demands for consumption at multi-level. Produce light industrial products to meet the demands from housing projects for low-income families, new rural construction, and medical treatment, reconstruction after disaster, rural infrastructure, transportation facilities, and safety food and oil for people in both urban and rural areas. Develop office supplies and tourists-oriented products with distinguishing features. Actively develop products specially demanded by ethnic minorities.

3. Stabilize and develop the international market. Actively answer the trade friction and consolidate the traditional international markets such as United States, Europe and Japan. Adopt diversified exports to positively branch out the emerging markets such as the Middle East, , Africa, Northern Europe, Southeast Asia, and Southwest Asia. Firstly, support the backbone enterprises to “go global” through various means, to set up the logistics centers and distribution centers at major distribution markets. Secondly, establish economic trade cooperation zones to positively carry forward the construction of overseas and economical trade cooperation zone. Thirdly, continuously support the construction of special markets for foreign trade, establish special frontier trade markets in the Southeast Asia, Middle Asia and Northeast Asia as well as China's light industrial product trading centers in such areas as Middle East, Northern Europe and Russia, etc. Enhance propaganda and the make more convenient the entry and exit of goods and personnel. Fourthly, bring into play the role of processing trade shall to support enterprises to expand processing trade.

4. Improve the foreign trade services system. Establish technology-related laws and regulations, standard platform and training system for the export products of light industry at both home and abroad. Set up the system for quality safety disclosure, returned goods inspection, early warning and emergency treatment, improve the enterprise's quality control level, and keep the good image of Chinese products. Simplify the clearance and inspection procedures for light industrial product exports to lower the relevant charging standards and improve clearance efficiency, and advance the facilitation of trade.

(II) Strengthen indigenous innovation ability

1. Improve the localization of major equipment. Based on the foundation of introduction and absorption, make breakthroughs in the key technology of major equipment, accelerate the indigenous development of equipment. For the papermaking equipment, particularly develop the self-contained equipment with large width and high-speed. For food equipment, particularly develop the new type of green splitter, energy-saving and high efficiency equipment for concentration by evaporation, high speed and aseptic pot-type equipment, diaphragm type cross flow filter and high speed bottle blowing equipment, etc., and improve rate of indigenous development from 40% to 60%. For the plastic equipment, particularly develop the equipment featuring fully closed loop servo, electromagnetic induction heating, and multi-level extrusion. For the industry-oriented tailoring equipment, high-speed and electric controlled multifunctional embroidery machine, electric controlled cutting and ironing equipment, bare engine integration equipment to be especially developed, and improve the proportion from 10% to 50% and increase the production efficiency by 40%.

2. Carry forward innovation and industrialization of key technologies. Combine the industry, institute and to support the innovation and industrialization of new type of plastic materials for agricultural use, air-condition compressor with frequency conversion, high efficiency and energy- saving freezer compressor, type large-sized continuous washing machine unit, cogeneration of sugar and energy, new type energy-saving and environmentally friendly illuminant, new type of composite microbe materials for strong wastewater disposal, special surface activating agent, new energy cell, contaminant discharge and use of salvage property. Establish a public service platform for technology innovation for the major industries. Establish the state and technological research center for such fields as food and oil, cell and leather and set up the technology innovation coalition for such fields as papermaking, ferment, wine-making, sugar refining, and leather.

3. Carry out public services well. Improve the construction of public service platforms for the special areas and industry colonies of light industry, provide enterprises with services concerning information, technological development, technical consultation, product and development, popularization of fruitful results, product examining, and manpower training.

(III) Accelerate the implementation of technical reconstruction.

1. Improve the overall technical level of industry. Support the papermaking industry to conduct the technical renovation by means of such technologies as deep delignification, element-free chlorine bleach, high and medium condensing and fully automatic control system; support the home appliances industry to upgrade and renovate the production lines for the critical components of refrigerator, air-conditioner and washing machine, so as to realize the industrialization of high efficiency and energy-saving refrigerator, air-conditioner and washing machine; support the to upgrade the green plastic construction materials and multifunctional agricultural film with large width; support the surface active agent industry to popularize the use of environmentally friendly surface active agent, realize the industrialization of environmentally friendly functional products; support the hardware industry to upgrade the traditional processing technology and equipment, improve the production level.

2. Carry forward energy-saving and pollution reduction. Particularly implement the technical renovation for energy-saving and pollution reduction in such industries as food, papermaking, cell and leather. The new type of production and comprehensive technology to be further used in the food service industry. The papermaking industry to accelerate the application of the technologies concerning clean production, non- wood and alkali recovery, and methane power generation. Online pollutant emission monitoring system to be popularized. For the cell industry, the button-shaped alkali and manganese cell without mercury to be popularized. Ordinary zinc and manganese cells to be free of mercury, and cadmium. and ionization cells to replace cadmium and nickel cells. Clean production technology such as hair-saving and non-hair methods and low-lime and lime-free and environmentally friendly taw, as well as solid waste to be further popularized in the leather industry. The clean planning to be made for the major enterprises to support the implementation of the demonstration project for cycling economy. Promote energy-saving technology for light industry as required by the National Key Energy-Saving Technologies Popularization (First Batch). Support the construction of software and hardware for statistics and monitoring system used in the calculation of energy-saving and pollution reduction of such fields as food, papermaking, cells, and leather.

3. Adjust the product structure. Support the development of market shortage products, optimize the product structure and increase domestic content ratio. Support deep processing of agricultural by-products to particularly carry forward the diversification of oil verities. Implement the production with high efficiency, low consumption and ecology to advance the appreciation and deep development of oil bearing crop, add the productive capacity of 1-million-ton peanut oil, 1-million-ton colza oil, 500,000-ton cottonseed oil and 1-million-ton special non-fluid oil. Guarantee the safety supply of edible . Continuously implement the National 10th Five-Year Plan for Engineering Construction for Integration of Woods and Paper-making and 2010 Special Plan, accelerate the construction of main projects and add the productive capacity of 2.2-million-ton wood pulp, 300,000-ton bamboo pulp, increase the proportion of home-made wood pulp and boost the integrative growth of woods and paper-making.

(IV) Implement food processing safety special projects

1. Large efforts to sort out food processing enterprises. Inspect food processing enterprises in terms of manufacturing license, market admission, product standard, and quality safety management, and resolutely ban illegal production and processing of enterprises without the hygiene license, business license, and food manufacturing license. Severely punish enterprises with qualified if they produce unsatisfactory products and conduct import and export illegally. Severely crack down on counterfeit and fake foods, use of non-food raw materials, and production with recycled food.

2. Comprehensively clean up food additives and illegal supplements. Deeply carry out special inspection and cleanup work on food additives and illegal supplements, clean up and publish in a name list the non-edible substance and abusive food additives according to the Health Standard for Use of Food Additives (GB 2760-2007), and standardize the safety use of food additives.

3. Enhance the construction of food safety monitoring capability. Enhance for key enterprises in such fields as grain and oil, meet and meat products, dairy products, food additives, beverage, tin, wine- making, ferment, sugar-refining, and baking. Increase the advanced inspection equipment for inspection, dynamic monitoring on production process and ex-work examining, in particular, the quick test and on-line measurement equipment. Improve the enterprise's internal quality control and monitoring system and food quality traceability system.

4. Improve the entry requirement threshold for the food service industry. Clearly define essential conditions for such aspects as raw material site, management standards, production operation procedures, product voluntary standards and quality control system, accelerate the formulation and modification of industrial policy and industry admission standards for such major food processing industries as dairy products, meet and meat products, aquatic products, grain, oil plants, and fruits and vegetables.

5. Establish and improve the food recall and withdrawal system. Establish and improve the system for initiative recall, ordered recall and withdrawal of unqualified food as well as set up the food recall center, clearly define the scope and level of food recall, to make the food recall and withdrawal system feasible. Improve the food safety-related complaint acceptance system, strengthen the management on complaint acceptance.

6. Strengthen the good faith system for the enterprises in the . Based on the guidance of government, motivation of industrial association and self-discipline of enterprise, accelerate the establishing of the good faith system for the enterprises in the food industry, which is subject to laws and regulations, social morality, self-discipline of enterprises and social control, evaluate good faith and implement rewards and penalties. Formulate guiding opinions on the construction of food enterprises' good faith system. Carry out pilot projects for food enterprises' good faith system. Follow up and evaluate implementation of guidance on food enterprises' good faith system, timely modify and improve relevant codes and standards.

(V) Strengthen the construction of independent brands

1. Support brand enterprises with advantage to carry out transregional mergers and reorganization and construction of technical renovation and innovation ability, motivate the integration of industry and increase the degree of industrial concentration. Enhance the actual strength of brand enterprises. Guide enterprises to branch out the international market, improve the popularity and competitiveness of independent brands by means of international exhibition, advertisement, quality certification, and public service platforms.

2. Support Chinese enterprises with actual strength to “go global”, implement localized production, expand the international market, enlarge product scope, and increase the brand influence.

3. Improve the certification and examination system, actively expand the multilayered exchanges and cooperation with principal trade partners, increase the world community's acceptance on China's results of examination and certification, and establish the global image of independent brands.

4. Strengthen the protection of independent brand, further carry out propaganda, and enhance the enterprises and whole society’s awareness and sense of responsibility for protection of independent brands.

(VI) Boost the orderly transfer of industry.

1. Based on optimization of regional arrangement, encourage regions with advantageous resources to summarize the experience on the development of industry colony, improve the construction conditions and business environment, carry out industry transfer, and cultivate regions and industry colonies with distinguishing features of the light industry.

2. According to the characteristics and development of industry, carry forward industry transfer. Boost the research, development, manufacturing and distribution of such major products as refrigerators, air-conditioner and washing machine to be gradually transferred from Pearl River Delta, Yangtze River Delta, and Bohai Ring Area to the eligible areas, middle and west areas. Guide the east coastal area where the leather and shoe-making is concentrated to use the advantages to conduct the R&D, design and trade, so that the manufacturing and processing to be transferred to the eligible areas with resource advantages. Transfer the and ferment industries to regions where the rich raw materials and resources are available.

At the same time, in the course of industry transfer, strictly follow environmental protection laws to put an end to “pollution transfer.”

(VII) Improve product quality.

1. Establish the safety guarantee system for product quality. Firstly, strictly implement the Product Quality Law of the People’s Republic of China to standardize the market access system and product quality supervision, accelerate the establishing of quality safety-related risk monitoring, early warning, information notification, quick disposal, product follow-up, and recall and withdrawal system, and publish severely enterprises that violate quality safety. Secondly, carry out enterprises as responsible for the product quality, strictly carry out product quality standards, comprehensively strengthen quality control, and guarantee the product quality as required in terms of purchasing of raw materials, production and processing and factory inspection. Thirdly, establish the standardized enterprise quality evaluation system and record and release system for credit of product quality, and enhance the self-discipline inside the industry. Fourthly, improve the national service platform for detection techniques of product quality to upgrade examination equipment.

2. Accelerate the formulation and modification of industry standards. Formulate 450 new standards for such industries as food additives, meat products, wine-making, dairy products, beverage, furniture and decoration materials, among which 70 national standards are for the food additives; 150 national standards are for the furniture and decoration materials. Modify 550 standards of over 5 years for such industries as plastics, hardware, leather, washing articles, and beverage. Improve afety standards, basic working standards, major product standards, and test method standards for such major industries as home appliances, papermaking, plastics, lighting fittings, hardware and leather. Formulate and revise resources- saving and environmental protection-related standards for such industries as plastics degrading, pulp- based papermaking, leather-making, and cell recycling, and improve the relevant technical standards system.

(VIII) Strengthen the self-management of enterprises.

Strengthen law propaganda, strengthen the self-discipline of enterprises, comprehensively improve the quality of enterprise, and enhance the sense of legitimate operation and sense of social responsibility. Deepen enterprise reforms, speed up the construction of modern enterprise system, improve the company's management structure, and increase the feasibility of business management. Establish the modern management concept, strengthen the business management, and improve the operating decision, design of products, resource allocation, product production, quality control and market development, and enhance quick-reaction capability to meet the market demands. Make efforts to develop salable products, and improve economic performance through management. Value talent training to enhance personnel quality and arrange the human resources properly.

(IX) Eliminate backward productive capacity.

Establish industrial withdrawal mechanisms, clarify elimination standards, quantify indicators, and increase efforts to eliminate. Make efforts within three years to eliminate a batch of backward technical equipment that is featured with higher energy consumption and unqualified to environmental protection standards. In the papermaking industry, phase out straw pulp production units with the annual output below 34,000 tons and the chemical pulping lines with the annual output below 17,000 tons, close down paper mills using waste paper as raw materials that cannot reach discharge standards and have an annual output less than10, 000 tons. In the food service industry, eliminate production technics and units for alcohol and MSG with the annual output below 30,000. In the leather industry, eliminate production lines with the annual processing capacity below 30,000 standard sheets. In home appliances, phase out refrigerators, freezers, automobiles, and air conditioners that use chlorofluorocarbon as foaming agent or refrigerant agent as well as lower energy efficient products. In the battery industry, eliminate the cylindrical alkali manganese cells with the mercury higher than 1ppm and buckle type alkali manganese cells with the mercury higher than 5ppm. Accelerate the implementation of energy-saving lights to substitute the productive capacity of 600 million incandescent lamps.

IV. Policy measures

(I) Further expand the subsidies varieties for “home appliances going to the countryside.” According to the peasantry's wills and the request of industrial development, include microwave ovens and induction cookers shall be included into the range of subsidies, and relax the restriction on the quantity to two sets, from allowing each household can to buy one set of each type. Central finance to increase support to ethnic minority groups and severe earthquake-hit areas.

(II) Increase export rebates for part of light industrial products. For part of light industrial products that are excluded from “higher pollution, higher energy consumption and resources-related products,” further increase export rebate rates and accelerate the progress of export rebates, to guarantee timely tax refunds in sufficient amounts.

(III) Adjust the catalogue of the processing trade. Continue prohibiting processing trade for “higher pollution, higher energy consumption and resources-related products.” For products in conformity with national industrial policies and macroeconomic control excluded from the “higher pollution, higher energy consumption and resources-related products,” cancel the ban for processing trade. To some labor- intensive, environment-friendly and energy-saving products with higher technological contents, relax restrictions on processing trade. For the products completely made of imported resources, the production process of which is featured with lower pollution and energy consumption, permit the carrying out of processing trade.

(IV) Solve the problems on collection and storage of farm-related products. Further expand the state sugar reserves. Encourage local governments to adopt loan discounts with circulating funds, encourage enterprises to collect and store such farm-related products as pulp and paper, concentrated cider, and relieve unsalable products and serious overstock.

(V) Further strengthen technology innovation and renovation. Support indigenous R&D on key equipment, innovation, and industrialization of key technology, and upgrade technical equipment in the key industries, energy saving and emission reduction, safety in food processing, and construction of independent brands, etc.

(VI) Further provide financial support. Fulfill the State Council General Office Several Opinions on Stimulating Current Economic Development through Finance (Guo Ban Fa (2008) No.126), encourage financial institutions to increase credit support for light industry enterprises, provide credit support to some enterprises with good operating conditions, good credit records, and play vital roles in stimulating employment, but temporarily suffer from difficulties in operation. Allow mature loans of the above enterprises to be properly extended. Simplify the tax bureau's formalities and procedures on examining financial institutions’ bad debt cancellation; provide disbursement before tax and the provision of risk compensation in full amount for loan applicants of small- and medium-sized enterprises; support eligible enterprises to issue corporate or enterprise bonds, small- and medium-sized enterprise's complex bonds and short-term financing bonds, etc., to expand enterprises' financing channels; central and local public finance shall offer more support to the credit guarantee for small- and medium-sized enterprises with good reputation and standardized management, encourage such credit guarantee organizations to provide credit guarantee and financing service to small- and medium-sized enterprises in the light industry; apply financial instruments, such as export credit and export credit , to help the light industry enterprises obtain easier trade financing and prevent from risks of foreign trade. Encourage insurance companies to launch insurance products in relation to product quality and export credit, to protect such enterprises against risks. Establish and improve a centralized and -based registration center for movables and warranty of title shall be; simplify related registration formalities and lower registration charges, and guarantee debtee rights and interests.

(VII) Take great efforts to support small- and medium-sized enterprises. Support the special capital (fund) to support the development of existing small and medium-sized enterprises to lean toward light industry enterprises; the central foreign trade expansion funds to be applied to eligible light industry enterprises for consolidating and tapping on overseas markets. In accordance with relevant regulations, implement policies to small- and medium-sized enterprises in the light industry such as holding over the payment of social insurance or lower social insurance rates, etc..

(VIII) Strengthen guidance on industrial policies. Research and formulate industry policies and access conditions concerning ferment, food and oil, leather, battery, electrical lighting appliances, domestic glass and agricultural film, etc., as soon as possible, research improving the withdrawal mechanisms targeting seriously-polluted enterprises and backward productive capacity; adjust in due course the Catalogue for the Guidance of Industrial Reorganization and the Catalogue for the Guidance of Foreign-Invested Industries. Policies in relation to environmental protection, land, credit and industry and commerce registration, etc. shall be interconnected with the industrial policies, and fully reflect the roles of regulation and control with emphasis on both protection and pressure.

(IX) Encourage mergers and reorganization and elimination of backward productive capacity. Conscientiously carry out policies concerning merger and reorganization, grant support in terms of circulating funds, liability assessment and personnel placement, etc.; give priority to technology innovation and renovation launched by the merged or reorganized enterprises. Governments at all levels shall strengthen the elimination of backward productive capacity in the key fields of light industry, solve problems in personnel placement, shift in production, and liability settlement, etc., and maintain social harmony and stability.

(X) Bring into play the roles of industrial associations. Give full play to industrial associations’ roles in industrial development, technological progress, standard formulation, trade promotion, market access, and public services, etc. Establish information platforms on economic operation, prediction, and pre-warning system in the light industry, reflect situations and problem in a timely manner, guide related enterprises to implement the industrial policies, and strengthen self-discipline.

V. Implementation of the Plan

State Council relevant departments shall timely work out the relevant policies and measures according to the Plan and make the close coordination to guarantee the smooth implementation of the Plan. Post appraisal shall be properly carried out for the Plan, and give the suggestions in a timely manner.

Each region shall work out the specific proposals as per the goals, tasks and policies and measures defined in the Plan and local conditions, and guarantee the actual effect. Specific work proposals and issues arising from the implementation thereof shall be timely reported to the National Development and Reform Commission, Ministry of Industry and , and etc. relevant departments.