Overcapacity, the sword of Damocles over China's recovery? -- ChinaBiz -- People's Daily Online
Overcapacity, the sword of Damocles over China's recovery?

16:40 October 27, 2009

China to focus on economic restructuring in 2010

Overcapacity was not the result of the 4-trillion stimulus package, said Yao Jingyuan, chief economist with the National Bureau of Statistics. Between 2003 and 2007, China's high economic growth rate and booming overseas demand resulted in a huge capacity. The global financial crisis has slowed down China's economic growth rate and hurt global demand.

China to redress production overcapacity in six sectors

Overcapacity swallows profits of Chinese companies

· Overcapacity "severe" in some of China's traditional, new energy industries

"Industries are rushing into mass action without orderly development, which may lead to a new round of overcapacity."

· Overcapacity undermines China's industrial recovery

"Excess production capacity and blind investment in some industries were still major problems."

· China's new energy industry: a feast for others?
· Chinese Vice Premier Li stresses economy restructuring, innovation

Local governments should lay stress on economy restructuring and innovation to guarantee the long-term stable and relatively fast economic growth, said Li Keqiang, Chinese Vice Premier.

· Minister: no new iron and steel projects within three years

The capacity of production in the iron and steel industry reached 660 million tons while demand is 470 million tons - a surplus of 190 million tons. But at the same time there are 58 million tons under construction.

· China moves to address overcapacity in emerging sectors like wind power

Overcapacity has persisted in sectors of steel and cement, while redundant projects have also surfaced in emerging sectors of wind power and poly silicon, according to a statement issued afteran executive meeting of the State Council, which is presided by Premier Wen Jiabao.

· Guidelines for PV industry to be released
· Planned poly silicon projects delayed

Most poly silicon projects that have not started construction have been put on hold, as central government warned of overcapacity.

· China prevents repetitive construction in 4 trillion yuan investment

In terms of issues such as repetitive construction and production overcapacity, the central government has proposed preventing repetitive construction and tightening management at every investment stage

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