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Economist Li Daokui: The government should introduce policies to accelerate the elimination of overcapacity in cement, steel and other industries

Recently, the Bureau of Statistics released the economic data of the first half of 2015. CCTV's Economic Information Network invited Mr. Li Daokui, a professor from the School of Economics of Tsinghua University, to interpret the GDP and industry data of the first half of 2015. The following is the arrangement of cement.

Recently, the Bureau of Statistics released the economic data of the first half of 2015. CCTV's Economic Information Network invited Mr. Li Daokui, a professor from the School of Economics of Tsinghua University, to interpret the GDP and industry data of the first half of 2015. The following is the arrangement of cement.
Moderator: In the data of June, some industries with high energy consumption and high pollution are declining, which is also a traditional industry and faces great pressure, such as industry transformation, energy reform and overcapacity. So we want to discuss where the future of these industries lies?
Li Daokui: Actually, there is a very interesting economic truth in this. Common scholars believe that the government should not interfere in the adjustment of these industries, but what are the characteristics of China? China is still a catching up country. The growth law of our industries can be compared with the experience of historical and developed countries. It should be relatively clear. The products produced by these energy consuming industries do not mean that China's economy does not need them. The steel and cement they produce may have excess capacity in the short term, but they still need them in the long term. What should we do? The government should take the opportunity of economic adjustment to introduce policies to more effectively accelerate the elimination of some industries with high energy consumption and high pollution. After elimination, the price of some steel and cement will naturally rise because of the decline in supply. In addition, the government should give certain subsidies to enterprises in coastal areas, with docks, and with two ends out (which can go overseas). I have made a calculation that if it takes five years to green 50% of the steel production capacity, it can drive the GDP growth rate of 1.25% every year, which is a very large number. In addition, we should take into account the "the Belt and Road". Many countries on the "the Belt and Road" do not have steel plants or are seriously deficient in steel production capacity, so we should put the demand of the "the Belt and Road" into consideration of our current green capacity investment, and take advantage of this opportunity, Accelerate adjustment.

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