Ethanol: corn deep processing, fuel ethanol foreign capital access restrictions were canceled

As early as 2007, maize deep processing industrial use was opened, leading to the surge in corn prices, due to price increases too fast, in order to ease the contradiction between deep processing industry and feed aquaculture, so the state decided to limit the size of corn deep processing, corn deep processing industry The proportion of total corn consumption in the proportion of control within 26%; and all new and expansion of corn deep processing project, must be approved by the State Council investment authorities. In the same year, “opinions” are as follows:

On September 5, 2007, the National Development and Reform Commission issued the Circular on Printing and Distributing the Guiding Opinions on Promoting the Healthy Development of Maize Deep Processing Industry (Development and Reform Industry [2007] No. 2245) proposed that the corn deep processing project be included in the restricted foreign investment industry directory , During the pilot period temporarily do not allow foreign investment in bio-liquid fuel ethanol production projects and mergers, acquisitions.

After a lapse of ten years, the National Development and Reform Commission issued a document to cancel the corn deep processing, fuel ethanol and other areas of foreign capital restrictions:

June 28, the National Development and Reform Commission and the Ministry of Commerce jointly issued a document, “foreign investment industry guidance catalog (revised in 2017)” has been the CPC Central Committee and State Council agreed to be released, since July 28, 2017 from the implementation.

Corn deep processing, fuel ethanol with ten years to complete the gorgeous reversal, the apparent “directory” after the implementation of the better to attract foreign investment and construction, improve jobs, promote China’s economic growth, on the other hand can also introduce foreign advanced Technology, experience, and promote China’s deep processing of corn and fuel ethanol technology upgrading.

But the pros and cons of any coexistence, foreign capital restrictions are canceled, is the “wolf” or “cake” is still open to question. On the current actual situation, for our ethanol industry, the market did not become larger, but more people involved. Before the policy protection, only the disputes between their own people, but the policy to relax the signal issued after more mature than our foreign-funded enterprises will be introduced, industrial competition will intensify, and the integration between enterprises, the annexation will intensify , Competition is bound to increase.

So later, the existing domestic enterprises are emboldened to meet the open market, in addition to relying on demand side of the support, but also rely on their own industrial technology upgrades and transformation. Foreign capital needs China’s land market, domestic private enterprises also need foreign-funded enterprises of capital and technology, so how to achieve foreign capital and private complement each other, need to run to know.