Chinese authorities have called for efforts in preventing new capacities in cement and flat glass industries as the government remains firm in its drive to cut capacity.
Following the government's efforts to cut capacity, the two sectors have seen improved profitability, which prompted certain regions to expand their capacity, according to a notice released by the Ministry of Industry and Information Technology and the National Development and Reform Commission.
In light of the emerging trends, the notice strictly banned any approvals of new construction projects as the oversupplied situation in the two industries remained "grim."
For years, a wide range of industries in China, including steel, cement, aluminum, flat glass, and coal, have been running at overcapacity.
Related businesses in land supplies, environmental approvals as well as credit support should also be halted, while projects of capacity replacement should strictly follow local plans, according to the notice.
Industrial overcapacity is mainly attributed to massive infrastructure constructions and fast-paced urbanization, which requires a huge amount of building materials like steel and cement.
The move is the latest sign of the government's determination to regulate overcapacity, and its successful efforts have been seen in recent years, adding strength to the country's economic growth.
Last year, for example, China made sound progress in cutting overcapacity in the steel and coal sectors as a way of driving economic restructuring.