China to unveil plans to stabilise growth for 10 key industries

China's Ministry of Industry and Information Technology (MIIT) announced in August that it will soon roll out plans to stabilise growth in 10 key industries, including steel, nonferrous metals, petrochemicals and building materials. The measures will focus on "structural adjustment, supply optimisation and outdated capacity phase-out," turning the July 30 Politburo directive on capacity governance into concrete action. The rollout signals a shift from broad policy guidance to targeted enforcement.

Policy snapshot

Focus: The new plans are expected to prioritise structural upgrades - eliminating inefficient capacity and promoting advanced technologies. This marks a departure from late-2023 initiatives, which emphasised production stability and demand recovery. (GL Consulting will provide further analysis once the plans are released.)

Coverage: The 10 industries include both traditional heavy sectors and emerging manufacturing: steel, nonferrous metals, petrochemicals, chemicals, building materials, machinery, autos, power equipment, light industry and electronics.

Policy Context

The MIIT initiative builds on the July Politburo meeting, which outlined China's economic priorities for the second half of 2025:

• Growth priorities: Policymakers signalled satisfaction with current momentum, suggesting no large-scale stimulus in Q3. Efforts will instead focus on implementing existing policies, advancing capacity governance and boosting domestic demand.
• Refined "anti-involution" stance: Compared with the July Central Financial Work Conference, the Politburo dropped references to "low prices" and "backwards capacity." The shift highlights support for healthy market competition, favouring innovation and efficient capacity over cutthroat price wars.
• Wider capacity governance: Oversight will extend beyond outdated capacity to include inefficient duplication and disorderly competition in key sectors, such as low-altitude economy and new energy, aimed at preventing premature overcrowding in high-growth industries.
• 15th Five-Year Plan ahead: The 20th Fourth Plenum in October will draft the 2026–2030 national economic development plan, expected to focus on technological innovation and "Dual Carbon" goals.

Outlook

Industry leaders with technology advantages: Structural reforms and capacity cuts are likely to accelerate market share gains for environmentally compliant, energy-efficient and innovation-driven companies.

Green tech and digital service providers: Industrial upgrades will spur demand for decarbonisation solutions and digitalised production management.

Note: This article has been issued by Mysteel and has been published by AL Circle with its original information without any modifications or edits to the core subject/data.