On Monday, November 8th, China's Ministry of Land and Resources announced that by strengthening the overall control of land and resources development and utilization and strictly controlling the supply of construction land for new capacity projects, no new construction land plan indicators will be allocated to projects in industries with severe overcapacity such as steel, cement, electrolytic aluminum, flat glass, and ships.

The press release on the website of the Ministry of Land and Resources stated:

We will do a good job in the supporting work related to resolving severe overcapacity, carry out the clean-up of land use for illegal projects, and for new capacity projects in industries with severe overcapacity, we will not accept any applications for pre-examination of land use.

At the same time, a comprehensive investigation should be conducted to clarify the land use situation of ongoing and completed illegal capacity projects in industries with severe overcapacity, and classified handling opinions should be put forward. We will resolutely abolish preferential policies on land and resources, and clean up and abolish preferential policies on land and mineral use for projects in industries with severe overcapacity.

In addition, promote the elimination and withdrawal of backward production capacity and the mergers and reorganizations of enterprises; Establish a long-term mechanism for land and resources management; Strengthen the supervision and management of land and resources; Seriously investigate and deal with illegal and non-compliant land use behaviors.

Last month, The State Council issued guiding opinions on resolving the contradiction of severe overcapacity, stating that the national investment management regulations and industrial policies should be strictly implemented, and the management of projects in industries with severe overcapacity should be strengthened. No localities or departments are allowed to approve or file new capacity projects in industries with severe overcapacity under any name or in any way All relevant departments and institutions are prohibited from handling business related to land (sea area) supply, energy assessment, environmental assessment approval, and new credit support.