China's State Development and Reform Commission (SDRC) has recently unveiled continued measures to rein over-investment in the steel, aluminum and cement sectors.

The commission stopped the construction of new iron and steel projects, electrolytic aluminum projects and alumina projects that have not obtained government approval. It also says new projects must go through strict state approval procedure.

Eager to attract investment, some regional governments used to allow certain projects to go ahead without receiving official approval.

An SDRC official said production capacity in the three sectors has been growing too fast. The capacity of existing production centers combined with those now under construction has far exceeded prospective market demand.

Meanwhile, the three sectors feature low-level technological equipment and irrational product mix and poor distribution of products.

"Excessive low-quality capacity expansion of the three sectors have strained the shortage of energy, electricity, transport capability and ores, and damaged the ecological environment," said the official.

He said the commission will continue to support companies that meet the regulations to speed up technology upgrading and restructuring product mix.

(Xinhua News Agency August 26, 2004)