China to tighten control over energy-intensive industries

Chinese Premier Wen Jiabao said the government will tighten control on energy-intensive industries while reforming energy and resources prices further in order to meet its energy-reduction target. Wen warned that growth in some energy-intensive and pollutive industries had been “overly rapid” in the first quarter and China may not meet its five-year energy conservation target if the problems continue. By cutting energy consumption per unit of GDP by 1.23% in 2006, instead of the targeted 4%, Beijing must now make inroads of up to 5% each year until 2010 if it is to reach its long-term target of a 20% cut in energy use. Efforts to phase out obsolete capacity in energy-intensive industries will be pursued, as well as efforts to curb exports of certain products to promote energy efficiency. (April 27, 2007)