According to Reuters, China will strictly control large-scale investment plans for seven emerging strategic industries, including high-speed rail and wind power industries, to reduce its cutting-edge projects in industries that suffer from corruption and overcapacity problems. “The government is reconsidering the planning of the seven strategic emerging industries,†a source told Reuters. The source requested anonymity because he did not have the right to speak to the media. He said, “The scale reduction is still under study.†The above strategic emerging industries cover high-end equipment manufacturing, new energy, biotechnology, next-generation information technology, new energy vehicles and energy-saving and environmental protection technologies. Two informed sources said that the reduction of high-speed rail investment has a direct relationship with the former minister of the Ministry of Railways due to corruption. The wind power industry is facing overcapacity problems. The new railway minister Sheng Guangzu said that this year's railway infrastructure investment is 600 billion yuan, and Liu Zhijun's amount when he was in office was 700 billion yuan. Liu Zhijun originally planned to reach 380 kilometers per hour when he was in office, but now it is limited to 300 kilometers. In May, railway infrastructure investment decreased by 16.9% from the same period of the previous year to RMB 42.4 billion. Also to be cut are wind power plans. Shao Bingren, deputy director of the National Committee of the CPPCC Population Resources and Environment, once said that the wind power industry has faced overcapacity. According to the 12th Five-Year Plan, China will build seven tens of thousands of kilowatt-class wind power bases in the west. But critics believe that the above plans require a large investment in the grid, because wind power and solar power plants are mainly in the west and inland areas, but the manufacturing industry is concentrated in the southeast coast. China originally planned to invest up to 1.5 trillion US dollars in these seven industries during the 12th Five-Year Plan (2011-2015), turning it into a pillar of economic growth and transforming China's model of producing cheap products. The output of seven emerging strategic industries currently accounts for about 2% of gross domestic product (GDP). The government hopes that by 2015, the ratio will increase to 8% and by 2020 it will increase to 15%.
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