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China has ordered over 1,400 companies in 19 sectors to reduce excess output this year as part...

China has ordered over 1,400 companies in 19 sectors to reduce excess output this year as part of the government's strategy of re-balancing the economy. The firms affected include those in the steel, ferroalloys, electrolytic aluminum, copper smelting, cement and paper industries. "This is a real move and is very specific," says ANZ economist Raymond Yeung. "They maintain the overall tone that they’re not focusing on the quantity of growth but the quality of growth."
Comments (4)
  • Force feeding an economy with capital in the form of bad debt is a prescription for value destruction, not value creation.
    increasing sectors of the Chinese economy no longer earn their true cost of capital.
    China is now as addicted to bad debt and money illusion as the US, Japan and most of Europe.
    26 Jul 2013, 05:25 AM Reply Like
  • leave it to a Governmet...a communist one at that...to see excess production as a bad thing. how ironic. of course you can't have capitalism without surpluses.
    26 Jul 2013, 06:17 AM Reply Like
  • Isn't this what Obama did to car dealers after Chrysler was bailed out?

     

    http://bit.ly/13iezxV

     

    Perhaps China is just following in U.S. foot prints.
    26 Jul 2013, 08:44 AM Reply Like
  • How do they maintain 7% growth with this happening?
    26 Jul 2013, 12:38 PM Reply Like
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