(FT) -- China plans to close outdated factories owned by more than 2,000 companies in heavy industries in the clearest sign yet of Beijing's determination to meet its low energy targets even at the expense of economic growth.
Beijing pledged five years ago to reduce energy intensity, a measure of energy consumed per unit of gross domestic product, by 20 per cent by the end of 2010. But the government has struggled to meet that goal.
The latest policy statement underscores how heavy industry, which accounts for more than half the country's energy demand, will bear the brunt of the crackdown. The move is aimed at promoting energy conservation and speeding the shift of China's economy away from energy-intensive industries.
Beijing said it would target 18 industries, including steel and cement, and took the unusual step of listing each company affected and the amount of production it must close by the end of September. The list included subsidiaries of large state-owned companies such as Chinalco, Angang Steel and the Shougang Group.
Those companies that fail to comply could have their business licences revoked or their power cut off. Banks would be forbidden from extending credit to the offending parties. CNN
