During the national "two sessions" , Ge Honglin, the former chairman of the Standing Committee of the National Committee of the CPPCC and Chinalco, called for the 2021 of defining the raw materials industry as "two high, one capital" and "high energy consumption" in a proposal to be submitted soon, correcting policy discrimination against the raw material industry.

The relevant departments of the government fully realize that the raw material industry has gone from tradition to modernity, fully understand that the raw material industry is the foundation of manufacturing industry, and allow it to enjoy the permissible industrial policy as soon as possible, including financial, fiscal, trade and other aspects of inclusive policy.

It is understood that around 2005, the relevant departments issued a control of steel, electrolytic aluminum, iron alloys, refined oil and other high energy consumption, high pollution, resource-based products export policy. From this, produced"two tall one capital"the view. "subsequently, the term has evolved into a definition of the raw materials industry and has continued to appear in government documents. It has not only affected the reputation of the raw materials industries such as steel, non-ferrous metals and building materials, but also restricted the raw materials industry's project investment, financial credit granting, corporate listing financing, export tax rebates and so on. Businesses have responded with strong calls for rectifying policy discrimination, " Ge Honglin said in the proposal.

In response to the stereotype of "two high schools and one capital" and related issues, Ge Honglin proposed three aspects of the proposal:

First, we should correct the definition of raw material industry with "two high and one capital" and "high energy consumption" as soon as possible.

Ge Honglin's proposal points out that "there are no backward industries, only backward products" , industrial policy is not accurate, to generalize the whole "One-size-fits-all" , will mislead society's cognition, affect industrial transformation and upgrading, restricting the development of raw material industry towards high quality. It is suggested that the relevant government departments should correct the definition of raw material industry with "two high and one capital" and "high energy consumption" as soon as possible.

Second, try to abandon the old vision, fully understand the raw material industry has been from the traditional to modern.

It is understood that since the new century, China's iron and Steel, non-ferrous metals, building materials and other raw material industries have carried out a series of work requirements of the Party Central Committee, vigorously eliminated backward production capacity, vigorously strengthened technological innovation, and energy conservation and emission reduction have taken the lead in the world. For example, in the Non-ferrous metal industry, the energy consumption per unit product for smelting copper, lead and zinc decreased by 82.3% , 53.3% and 65.8% respectively from 2000 to 2019, and that for smelting copper and lead decreased by 5.5% and 5.6% respectively from 2019 to 2020, copper, aluminum, lead, zinc smelting backbone enterprises generally meet the special emission limit standards, ranking the world's leading level.

Intelligent manufacturing, carbon peak is becoming the direction of the raw material industry. Non-ferrous industry electrolytic aluminum production capacity "ceiling" has been formed. "It is suggested that the relevant government departments should actively guide society, abandon The old vision of "two high schools and one capital" , and fully see that the raw material industry has moved from tradition to modernity and no longer discriminates against the raw material industry, " Ge Honglin said in the proposal.

Third, fully understand that the raw material industry is the basis of manufacturing industry, so as to allow it to enjoy the type of industrial policy, including finance, taxation, trade and other inclusive policies.

The raw material industry is not only an indispensable industry for the development of the national economy, but also a basic industry for manufacturing. In the post-epidemic "six stability" and new infrastructure, new energy automobile industry development, Non-ferrous metal and other raw materials are playing an important supporting role. According to the United Nations Industrial Development Organization, the raw materials industry has consistently accounted for about 32 per cent of global manufacturing value added. China's 2018 economic census showed that the proportion of 30.2% , lower than the global average level. It is suggested that the government departments concerned should further increase their support to the raw material industry and at least allow them to enjoy the inclusive industrial policies including finance, finance, taxation and trade. 

Source: Beijing News

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