NDRC Releases Vigorously Promote the Optimization and Upgrading of Traditional Industries
2025-12-31
According to a December 26 announcement on the official website of the National Development and Reform Commission (NDRC), the Department of Industrial Development of the NDRC published an article titled Vigorously Promote the Optimization and Upgrading of Traditional Industries. The article proposes that for the optimization and upgrading of traditional industries during the 15th Five-Year Plan period, efforts should focus on problem-oriented approaches and category-based policies, balance the relationship between an efficient market and a well-functioning government, emphasize the simultaneous advancement of dismantling outdated capacities and establishing new ones¡ªprioritizing establishment before dismantling¡ªand implement targeted support and regulation. By adopting market-based and law-based methods to fully mobilize the enthusiasm of all stakeholders, we will vigorously drive the optimization and upgrading of traditional industries through the high-quality and efficient development of producer services.
The article points out that for raw material industries such as steel and petrochemicals, the key lies in balancing supply and demand and optimizing the industrial structure. The raw material sector serves as a crucial foundational and pillar industry of China¡äs national economy. Currently, raw material industries including steel and petrochemicals are generally confronted with challenges such as insufficient dynamic balance between supply and demand and suboptimal product mix. During the 15th Five-Year Plan period, the raw material industry must deepen supply-side structural reform, advance coordinated efforts on both the supply and demand sides, increase the supply of high-end production capacity, and ensure appropriate total scale, basic balance between supply and demand, and upgrading of product structure. It will strengthen industry governance, adhere to the principle of "reducing oil refining capacity, increasing chemical product output, and improving quality", continue to regulate crude steel output, strictly prohibit the illegal addition of new production capacity, and promote the survival of the fittest in the market. Centering on the demands of key industrial chains, it will support enterprises in accelerating industrial technological innovation, promote the R&D and industrialization of innovative products, speed up efforts to address weaknesses and fill gaps, and drive the industry to move toward the medium-high end at a faster pace. It will also strengthen regular operation monitoring and scheduling and give full play to the role of early warning mechanisms.
For the "new three key sectors"¡ªnamely new energy vehicles, lithium batteries, and photovoltaic products¡ªthe key lies in regulating market order and spearheading development through innovation. The "new three key sectors" are competitive industries cultivated by China amid fierce market competition, serving as a new engine for the high-quality development of China¡äs foreign trade and demonstrating China¡äs strength in the global green industry transformation. Nevertheless, these sectors are also facing challenges such as disorderly market competition and insufficiently solid core competitive edges. During the 15th Five-Year Plan period, we will comprehensively rectify "involutionary competition", safeguard a fair competition environment, raise industry concentration, and build a global highland of technological leadership. We will regulate market competition order, thoroughly implement the fair competition review system, strengthen price monitoring and quality inspections, and prevent cutthroat competition driven by unreasonably low prices. We will enhance supply chain governance, ensure the payment of outstanding dues to small and medium-sized enterprises, and foster a sound ecosystem of mutual benefit and win-win cooperation in the industry. We will intensify investment in technological innovation to consolidate our leading technological advantages. We will strengthen macro-control and adhere to market-based and law-based approaches to phase out backward and inefficient production capacity. We will also reinforce industry self-regulation, give play to the role of industry associations, guide enterprises to cultivate differentiated competitive edges, and promote the spirit of entrepreneurship.
The article points out that for raw material industries such as steel and petrochemicals, the key lies in balancing supply and demand and optimizing the industrial structure. The raw material sector serves as a crucial foundational and pillar industry of China¡äs national economy. Currently, raw material industries including steel and petrochemicals are generally confronted with challenges such as insufficient dynamic balance between supply and demand and suboptimal product mix. During the 15th Five-Year Plan period, the raw material industry must deepen supply-side structural reform, advance coordinated efforts on both the supply and demand sides, increase the supply of high-end production capacity, and ensure appropriate total scale, basic balance between supply and demand, and upgrading of product structure. It will strengthen industry governance, adhere to the principle of "reducing oil refining capacity, increasing chemical product output, and improving quality", continue to regulate crude steel output, strictly prohibit the illegal addition of new production capacity, and promote the survival of the fittest in the market. Centering on the demands of key industrial chains, it will support enterprises in accelerating industrial technological innovation, promote the R&D and industrialization of innovative products, speed up efforts to address weaknesses and fill gaps, and drive the industry to move toward the medium-high end at a faster pace. It will also strengthen regular operation monitoring and scheduling and give full play to the role of early warning mechanisms.
For the "new three key sectors"¡ªnamely new energy vehicles, lithium batteries, and photovoltaic products¡ªthe key lies in regulating market order and spearheading development through innovation. The "new three key sectors" are competitive industries cultivated by China amid fierce market competition, serving as a new engine for the high-quality development of China¡äs foreign trade and demonstrating China¡äs strength in the global green industry transformation. Nevertheless, these sectors are also facing challenges such as disorderly market competition and insufficiently solid core competitive edges. During the 15th Five-Year Plan period, we will comprehensively rectify "involutionary competition", safeguard a fair competition environment, raise industry concentration, and build a global highland of technological leadership. We will regulate market competition order, thoroughly implement the fair competition review system, strengthen price monitoring and quality inspections, and prevent cutthroat competition driven by unreasonably low prices. We will enhance supply chain governance, ensure the payment of outstanding dues to small and medium-sized enterprises, and foster a sound ecosystem of mutual benefit and win-win cooperation in the industry. We will intensify investment in technological innovation to consolidate our leading technological advantages. We will strengthen macro-control and adhere to market-based and law-based approaches to phase out backward and inefficient production capacity. We will also reinforce industry self-regulation, give play to the role of industry associations, guide enterprises to cultivate differentiated competitive edges, and promote the spirit of entrepreneurship.