In 2013, Hebei Province's industrial economy faced the most complex and severe situation since the 2008 financial crisis. From January to August, the prominent features were downward pressure on the macroeconomy and insufficient effective market demand. From September to December, additional pressure arose from resolving overcapacity and preventing and controlling air pollution, increasing the difficulty of balanced macroeconomic regulation and control. Enterprises' production and operating costs continued to rise, and the degree of difficulty was unprecedented.
“In 2013, efforts to prevent and control air pollution and resolve overcapacity were continuously intensified, and the number of enterprises suspending or limiting production increased rapidly.” According to an expert from the Hebei Provincial Department of Industry and Information Technology, in the first half of 2013, 743 industrial enterprises above designated size in Hebei Province suspended production. After September, with the implementation of the State Council's Action Plan for Air Pollution Prevention and Control and the Guiding Opinions on Resolving the Serious Contradiction of Overcapacity, the province intensified efforts to address excess industries and polluting enterprises. The number of industrial enterprises above designated size suspending production increased month by month: 926 in September, 947 in October, 1,015 in November, and 1,142 in December, totaling nearly 10% of all industrial enterprises above designated size. By industry, among the 40 major industry categories in Hebei Province, suspended enterprises involved 35 industries; 7 industries exceeded 15%, and 4 industries exceeded 20%. Suspended industries were concentrated in cement, steel, glass, electroplating, chemicals, and others, while key treatment areas included Shijiazhuang, Tangshan, Handan, Xingtai, Langfang, and other cities.
After Shijiazhuang launched its heavy pollution emergency response in November 2013, all cement and calcium-magnesium enterprises ceased production, while steel, coking, ceramics, and thermal power enterprises limited production. Tangshan closed 304 mining, papermaking, rubber, and steel enterprises in two batches. The Wu'an area of Handan implemented mandatory production suspension and restriction measures for high-energy-consumption and high-pollution enterprises, with output cuts of 75%-80%.
“In 2014, our task of transformation and upgrading is even heavier.” According to an expert from the Hebei Provincial Department of Industry and Information Technology, under this year's plan for major industrial economic indicators in Hebei Province, the added value of industrial enterprises above designated size is to increase by 10.5% year on year, with 1,600 new industrial enterprises above designated size. In terms of eliminating outdated production capacity, the plan this year is to eliminate and reduce 15 million tons of crude steel, 10 million tons of cement, and 18 million weight boxes of flat glass. Most targets are “higher, heavier, and harder” than the actual completion last year.
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