China will strictly prevent "haphazard investment and redundant development" in the automobile industry, an official from the state planning agency said, apparently referring to proposed rules on automakers' investments in new factory capacity. Nian Yong, head of the National Development and Reform Commission's Department of Industrial Coordination, said the agency will soon publish and implement a new set of investment rules. Among other things, the new rules "will restrict industrial investment project management standards, strengthen regulation, prevent haphazard investment and redundant development," he said Saturday. China is looking to fix seemingly perpetual excess capacity in the country's auto industry, which is showing signs of worsening. Nian's remarks, which were made during a speech at an automotive industry conference in Tianjin, come as the industry has sought to dial down the proposed NDRC rules, which were published in July in draft form to seek public comment.
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