NDRC tells Chinese regions to avoid rushing into the same industries
In short
At its October press conference on 20 October, the National Development and Reform Commission (NDRC) said regions should develop new quality productive forces according to local conditions. Ren Zhongbao, a deputy director of its innovation and high-tech development department, said regions must fully justify their priority industries and major projects and firmly avoid a rush into the same fields.
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The National Development and Reform Commission (NDRC) held its October press conference on 20 October. Ren Zhongbao, deputy director of its innovation and high-tech development department, said that developing new quality productive forces according to local conditions is in essence a matter of being practical and realistic. He said it means building on each region's resources and preventing homogeneous competition. [ 1 , 2 , 3 ]
Ren said regions that plan key industries and propose major projects must fully verify whether they have the necessary basis locally, and must firmly avoid a rush into the same fields. According to Jiemian, he said the country is large and regions differ widely in resources, industrial base, science and education resources and innovation capacity, so their main directions should differ. [ 1 , 3 , 4 ]
The NDRC will, under national rules, coordinate national and provincial special plans for future industries and emerging pillar industries. Provincial development and reform departments are to control and coordinate the drafting of city- and county-level special plans, so that regions find development tracks that suit them while keeping to the principle of the country acting as one. [ 1 , 3 , 4 ]
Jiemian reported two further points. On project arrangement, Ren cited a document that calls for serious accountability where rushes into the same fields or blind investment cause major losses, and said the NDRC is drawing up a plan for hydrogen energy, where investment in some links has been hot. On support policies, he said using the name of developing new quality productive forces to misuse policies is strictly forbidden and is a bottom line. CLS and Jiemian reported that Ren said the NDRC will urge local authorities to use policies lawfully and not cross the red lines set by campaigns against involutionary competition and improper investment attraction. [ 1 , 3 ]
Why it matters
The remarks show the NDRC wants regional industrial planning coordinated and policy use kept within rules. Jiemian reported the guidance as covering planning, project arrangement and support policies.
Key facts
- The NDRC held its October press conference on 20 October. [ 1 , 2 , 3 ]
- Ren Zhongbao, deputy director of the NDRC's innovation and high-tech development department, said developing new quality productive forces according to local conditions means being practical and realistic, based on local resources and preventing homogeneous competition. [ 1 , 2 , 3 , 4 ]
- Regions planning key industries and proposing major projects must fully verify they have the necessary local basis and firmly avoid a rush into the same fields. [ 1 , 2 , 3 , 4 ]
- Provincial development and reform departments are to control and coordinate the drafting of city- and county-level special plans. [ 1 , 3 , 4 ]
- Ren said using the name of developing new quality productive forces to misuse policies in violation of rules is strictly forbidden and is a bottom line. [ 1 , 3 ]
- Ren said the NDRC is drawing up a plan for hydrogen energy, where investment in some links has been hot. [ 3 ]
Confirmed by several sources
- Ren Zhongbao said at the NDRC's 20 October press conference that regions must avoid rushing into the same industries and projects without proven local conditions. [ 1 , 2 , 3 , 4 ]
- The NDRC said it will coordinate national and provincial special plans for future industries and emerging pillar industries. [ 1 , 2 , 3 , 4 ]
Still unclear
- Details of the hydrogen energy plan, including when it will be issued. Only Jiemian mentions the plan, and it says only that the NDRC is drawing it up.