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Affected by the country's macroeconomic environment, it is expected that investment in ceramics will continue to cool in 2005 and there will be no major investment moves.
At the Central Economic Work Conference held on December 3, President Hu Jintao said that in 2005, investment scale will continue to be controlled and prices will remain stable. He said that he will “lead the overall economic and social development with a scientific concept of development, continue to strengthen and improve macroeconomic regulation and control, correctly grasp the intensity and focus of regulation and control, maintain stable and rapid economic growth, and maintain basic price stabilityâ€. Affected by this, next year the ceramic industry will not form a large scale of investment, especially in Guangdong Province, Qingyuan, Heyuan, Sanshui, Gaoyao and other new ceramic production bases, has basically completed the first round of investment planning. However, some later planned ceramics industrial parks in Zhaoqing, such as Sihui, Quang Ninh, and Deqing, will not be attractive to the foreign ceramics industry because of the macro-control factors.
In the past two years, the ceramics industry in Foshan has been moving outwards. Some surrounding areas rich in raw materials have quickly become the ideal place to undertake the transfer of Foshan ceramics, and the investment boom has frequently been triggered. With the increase in macro-control efforts, the momentum for the expansion of the pottery industry will be significantly curbed. The Central Committee proposed that in 2005, it is necessary to “reasonably determine the economic growth target and properly handle the relationship between development speed and quality and efficiencyâ€. At the same time, prudent fiscal and monetary policies will be implemented, and the excessive growth of investment in fixed assets will continue to be controlled. When implementing policies and measures to strengthen and improve macro-control, they must be treated differently and there is pressure. According to this macroeconomic environment, it can be predicted that investment in the ceramic industry will continue to cool down next year, and the focus of corporate competition will shift from extensive expansion to optimization of industrial structure and upgrading of product grades. The market pressure on companies will be further aggravated, and comprehensive competition factors will be further manifested.