BEIJING, July 7 (Xinhua) -- China will drive its industrial consolidation over the next five years in order to increase industrial concentration and eliminate overcapacity, a senior official said on Thursday.
Priority will be given to the automobile, steel, cement, electrolytic aluminum, rare earth mining, IT, equipment manufacturing and medical industries, according to Su Bo, vice minister of the industry and information technology.
He also pledged support for cross-border mergers and transregional acquisitions.
The country has intensified its efforts to consolidate its fragmented industries in recent years. However, these attempts have been slowed down by local governments, who have been reluctant to allow mergers and acquisitions over concerns regarding lost tax revenues.
Industrial consolidation is critical to the country's industrial development and the transformation of its economic growth model, Su said. He added that the government will continue to encourage industrial concentration in order to create larger corporate entities.