The supply potential has left demand far behind.

Chinese oil companies need to go overseas to seek energy assets and the government encourages that. The price at which they pay for the assets must still be within the limits of the companies.

Investment mania has been evident in the ferroalloy, coke, calcium carbide, automobile and copper smelting sectors.

The problem is also serious in auto production.

The investment has become a headache in some sectors.

Our guiding principle is a combination of market adjustment and government guidance while allowing market forces in allocating resources.