BEIJING, April 26 |Tue Apr 26, 2011 3:55am EDT
BEIJING, April 26(Reuters) - China's economic planning agency on Tuesday published adetailed list of industries that it would encourage, restrict or ban, ablueprint that could have a far-reaching impact on investment activity China over the coming years.
The National Development and Reform Commission said in a111-page list that it would eliminate oil refineries withcapacity of less than 40,000 barrels per day by 2013.
China will eliminate on-grid coal fired power generators ofless than 100 mw and shut down coal mine shafts with capacitybelow 30,000 tons per year, according to the list on theagency's website www.ndrc.gov.cn.
China will also restrict construction of crude distillationunits below 200,000 barrels per day.
It also vowed to restrict new projects for mining tungsten,moly, tin, antimony, and rare earths.
But China will also encourage nuclear power stationconstruction and exploration of uranium as well as furtherdevelopment of advance nuclear reactor technology.
The list will serve as a guideline for Chinese regulators inmaking policies on tax, bank credit, land and trade, and willalso be a reference for Beijing to decide which foreigninvestors are welcomed.
For projects in sectors listed as "to be encouraged",investors often find it easy to obtain approval from thegovernment, in addition to cheap bank loans and land as well aspreferential tax treatment.
But for industries labelled as "restricted" or"to-be-eliminated", investors will find it hard to getgovernmental approval for new projects and to maintainoperations. For example, such projects would be the first to becut off at times when electricity is restricted because of powershortages.(Reporting by Tom Miles and Jim Bai; Editing by JacquelineWong)