Multiple departments speed up the disposal of unqualified enterprises

The central economic work conference called for steady progress in weeding out the unqualified steel pipe manufacturers, speeding up the disposal of "zombie enterprises" and formulating exit measures. According to the work process of ministries and commissions, steel, coal and other industries are accelerating the disposal of "unqualified enterprises". Last November, for further promoting the structural reform of the supply side , some institute like the national development and reform commission, ministry of industry and information technology issued a notice to production enterprises for the disposal work. This notice further defined the disposal principle, the scope of disposal, treatment, disposal process and time, etc. In addition, the purpose of this public notice also include effectively guarding against enterprises to resolve the debt risk, boosting transfer efficiency of economic mass.

The important way to update development of the economy is steadily pushing forward the enterprise evolution. However, how to realize the evolution of hollow section manufacturers? It depends on the steel pipe market. Therefore, it is very important to create a fair competition environment and further strengthen the fundamental position of competition policy. From the current situation, it is more rely on the power of the market.

An executive director of a technology research institute said that speeding up the disposal of "zombie enterprises" has two roles. First, reduce inefficient supply, reduce overcapacity and accelerate the market clearing process. Second, they will optimize the stock of resources, increase the efficiency of resource allocation, and release a large amount of precipitated resources. These resources include tangible resources such as people, property, goods and land, as well as intangible resources such as entrepreneurship and market vitality. Of course, the short-term pain of dealing with "zombie enterprises" is inevitable. The key for China steel tube manufacturers is to stick to clear principles, use appropriate means and set rational goals. In principle, suppliers should adhere to the guidance of the government and rule of law. In terms of means, the standard of "zombie enterprises" should be defined, and different degrees of "zombie enterprises" should be classified.

The time and scope of the target should be well defined, and it is not easy to go too fast. In addition, there are many "zombie companies" in construction materials, commercial trade and real estate. In order to complete all the disposal work by the end of 2020, there is no doubt that the disposal will be intensified this year. The disposal work also include unqualified pipe production like the production of black steel pipe as raw material is very important.