The Ministry of Industry and Information Technology (MIIT), in coordination with 12 other government bodies, issued a series of targets and requirements on January 22 intended to spur the consolidation of nine pillar industries - including automobile manufacturing, pharmaceuticals, steel and cement - through merger and reorganization.

Now is the right time for planners and policymakers to focus on the orderly contraction of key industries instead of cultivating emerging sectors.

China has been expanding capacity in all of its largest industries since the 1980s in order to accommodate demand from developed countries. But when this demand dried up several years ago, the problem of excessive industrial capacity reared its ugly head over the Chinese economy.

If China wants to grow and stay competitive in the global market in the decades to come, it needs to first work on cutting the fat from its bloated industries and keep only essential capacity.

The author is Niu Wenxin, a media personality.