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At present, priorities of public investment arranged in the central budget of China include low-income housing, infrastructure in the areas of agriculture, water conservancy, and railway, people's livelihood projects such as those in social services, and also energy conservation, emission reduction, and ecological environment. (…)

(…) The Chinese Government has focused on promoting the development of emerging industries such as energy conservation and environment protection, and endeavored to strengthen a policy and institutional environment conducive to the development of the service sector.

The Chinese Government attaches great importance to conserving resources, protecting environment and addressing climate change. China is vigorously promoting energy conservation, emission reduction, and pollution prevention and control, through proactively curbing excess and outdated production capacity in certain industries. All these tasks are important component of China's efforts in adjusting industrial structure and transforming its economic development pattern. In particular, tackling severe production overcapacity is our priority in pushing forward the industrial restructuring now and in the years to come.

(…) The strategic emerging sectors mentioned in the twelfth Five-Year Plan (2011-2015) are: energy conservation and environmental protection industries; new-generation IT industry; biological industry; high-end equipment manufacturing industry; new energy industry, which focus on the development of new-generation nuclear energy and solar utilization, photovoltaic and photo-thermal power generation, and intelligent power grids and biomass energy; new material industry; and new-energy automobile industry. (…)

Specific industries such as emerging industries, high and new technology industries, industries that promote energy conservation and environmental protection , industries related to public welfare and public infrastructure, which would not otherwise attract capital, are supported by the State. The objective of these support programmes is to promote innovation, upgrade industries, and protect the environment and green development.

(…) China raised market access criteria for certain industries, and strengthened compliance enforcement with regard to industrial standards for admittance into technology, energy consumption, environment protection and safety. (…)

The authorities noted that despite this generally positive assessment, some risks to future growth and development persist. First, they point to: the fact that the basis of global economic recovery is not yet solid; considerable excess capacity in some industries; the tension between economic development, resources constraint and environmental protection; and potential risks in the financial sector. (…)

(…) Financial institutions were guided to extend credit support to key industries and sectors, such as railways, shipping, thermal power and steel, in keeping with credit risk management principles and supporting primarily enterprises that are profitable, comply with requirements on environmental protection and safe production and satisfy prudential credit conditions. Financial institutions were encouraged to use credit products flexibly to enhance support for export-oriented enterprises that were able to attract orders, were profitable and met prudential credit conditions; they were also guided to increase credit and financing support to sectors that promoted energy conservation and emissions reduction. To this end, the CBRC promulgated the Green Credit Guide, urging and guiding banking and financial institutions to enhance their support to the green economy (e.g. recycling and low carbon emission activities) and promote sustainable development based on the principles of controllable risks and sustainable business. (…)

Since the last review, the Chinese Government continues to carry out the work to close down excess and outdated production capacity in the industries of high consumption and high emission such as steel, cement and electrolytic aluminium. It has further strengthened the comprehensive treatment and control of air pollution caused by industrial enterprises, and accelerated the implementation of the transformation projects using clean production technologies. The Government also carried out clean production reviews in key industries such as steel, cement, chemistry, and nonferrous metal metallurgy.

From 2008 to 2012, China accumulatively closed down backward production capacities of 117 million tonnes in iron-making, 78 million tonnes in steel production, and 775 million tonnes in cement. Accordingly, China's energy consumption per GDP unit lowered by 17.2% and chemical oxygen demand and total sulfur dioxide emission respectively dropped by 15.7% and 17.5% respectively. In 2013, the energy consumption per GDP unit dropped by another 3.7%. Chemical oxygen demand and emissions of sulfur dioxide, ammonia nitrogen, nitrogen oxides dropped respectively by 2.9%, 3.5%, 3.1% and 4.7% respectively.