Five Directions Leading the Future of Aggregate Industry

 

Recently, Li Keqiang, Premier of the State Council, made a report on the work of the government, interpreting the overall requirements and policy orientation of economic and social development in 2018, and pointing out the direction for the development of China's aggregate industry.

 

Infrastructure Investment Building a Solid Foundation for Aggregate Demand

The government work report emphasized the key role of investment in optimizing the supply structure. In 2018, we will complete 732 billion yuan in railway investment, 1.8 trillion yuan in highway water transportation investment, and 1 trillion yuan in water conservancy investment. The major technological innovation and upgrading projects will be implemented.

 

 

 

The Regional Coordinated Development in Aggregate Industry

The government work report stressed the vigorous implementation of the rural rejuvenation strategy. We will promote the all-round development of rural undertakings. We will improve some infrastructure, such as water supply, power supply and information, and build 200,000 kilometers of rural roads.

 

The regional coordinated development strategy should be implemented. We will strengthen support for the reform and development in old revolutionary base areas, ethnic minority areas, border areas, and impoverished areas. 

 

 

Development Being the Base of the Aggregate Industry

The government work report required to improve the system of ecological civilization.  We will reform and improve the ecological environment management system, strengthen the control of natural ecological space use, implement the ecological environmental damage compensation system, improve the ecological compensation mechanism, and protect the ecological environment with a more effective system.

 

The Aggregate Production Capacity with No license, No Environmental Protection Being Eliminated

The government work report called for the elimination of invalid supply. We adhere to the market-based legalization approach, strictly implement laws and standards such as environmental protection, quality, and safety, resolve excessive production capacity, and eliminate backward production capacity. In 2018, the steel production capacity will be reduced by about 30 million tons, and the withdrawal of coal production capacity will be around 150 million tons.

 

 

The New Development in Supply Chain Finance

According to the government work report, the reform of the financial system should be accelerated. We will reform and improve the financial service system, support financial institutions in expanding inclusive financial services, standardize the development of local small and medium-sized financial institutions, and strive to resolve the financing difficulties and financing problems of small businesses. We will deepen the reform of multi-level capital markets and promote the development of bonds and futures markets.