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In Crackdown On Energy Use, China To Shut 2,000 Factories

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Earlier this summer, Prime Minister Wen Jiabao of China promised to use an “iron hand” to improve his country’s energy efficiency, and a growing number of businesses are now discovering that it feels like a fist.

The Ministry of Industry and Information Technology quietly published a list late Sunday of 2,087 steel mills, cement works and other energy-intensive factories required to close by Sept. 30.

Energy analysts described it as significant step toward the country’s energy-efficiency goals, but not enough by itself to achieve them.

Over the years, provincial and municipal officials have sometimes tried to block Beijing’s attempts to close aging factories in their jurisdictions. These officials have particularly sought to protect older steel mills and other heavy industrial operations that frequently have thousands of employees and have sometimes provided workers with housing, athletic facilities and other benefits since the 1950s or 1960s.

To prevent such local obstruction this time, the ministry said in a statement on its Web site that the factories on its list would be barred from obtaining bank loans, export credits, business licenses and land. The ministry even warned that their electricity would be shut off, if necessary.

The goal of the factory closings is “to enhance the structure of production, heighten the standard of technical capability and international competitiveness and realize a transformation of industry from being big to being strong,” the ministry said.

The announcement was the latest in a series of Chinese moves to increase energy efficiency. The National Development and Reform Commission, which is the government’s most powerful economic planning agency, announced last Friday that it had forced 22 provinces to halt their practice of providing electricity at discounted prices to energy-hungry industries like aluminum production.

So are they really aiming to increase energy efficiency here and improve the local environment? Or is this a way to get rid of capacity or is this a way to close factories of those who've fell out of favour with the political elite?

Or do they want the factory land to build houses on and for the local politicians to make a killing on the local property market?

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Probably a bit of both tbh. Close down older plants, open new ones which hire less people use less energy and are located in better places.

The old men of the CCP can demand bribes (big ones) to be spared from the list. Normal everyday Commie capitalism in China pay bribes or we shut you down. Foxxconn for instance has not paid its bribes for a while.

Huawei an indentical company to Foxxconn with an even higher death rate on the production lines has full paid up it's bribes for 2010 therefore nothing will happen to Huawei.

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