Connect with us

archive

Chinese Government Blocks New Projects for Troubled Sectors

China‚??s State Council announced a production plan for specific national industries to take on the country‚??s chronic overcapacity problem.

Chinese Government Blocks New Projects for Troubled Sectors (Reuters)

China‚??s State Council announced a production plan for specific national industries to take on the country‚??s chronic overcapacity problem. In sectors such as steel, cement, shipbuilding, aluminum and glassmaking, the Council decided to block approvals for new projects, until such time as the back-up is resolved. A capacity glut has destroyed profit margins in these sectors, leaving companies reliant upon government subsidies to counter heavy losses. The new Council plan will focus on ‚??establishing and perfecting‚?Ě market mechanisms, instead of relying on trying to force feed these sectors‚?? production quotas. Investors will be watching intently to see whether or not the Council‚??s change of tactics smooths out these bumpy Chinese sectors.

Newsletter Signup.

Sign up to the Human Events newsletter

Written By

Advertisement
Advertisement

TRENDING NOW:

Today a Milkshake, Tomorrow A Brick: Corporate-Backed Political Violence Is Here.

CULTURE

Buzzfeed Bashes 14-Yr-Old Trump Fan, Celebrates Kids in Drag.

TECH

The Lived Experience of Candace Owens.

CULTURE

Al Jazeera: ‘Jews Exploit Holocaust’.

FOREIGN AFFAIRS

archive

Chinese Government Blocks New Projects for Troubled Sectors

Chinese Government Blocks New Projects for Troubled Sectors (Reuters)

China‚Äôs State Council announced a production plan for specific national industries to take on the country‚Äôs chronic overcapacity problem. In sectors such as steel, cement, shipbuilding, aluminum and glassmaking, the Council decided to block approvals for new projects, until such time as the back-up is resolved. A capacity glut has destroyed profit margins in these sectors, leaving companies reliant upon government subsidies to counter heavy losses. The new Council plan will focus on ‚Äúestablishing and perfecting‚ÄĚ market mechanisms, instead of relying on trying to force feed these sectors‚Äô production quotas. Investors will be watching intently to see whether or not the Council‚Äôs change of tactics smooths out these bumpy Chinese sectors.

Newsletter Signup.

Sign up to the Human Events newsletter

TRENDING NOW:

Today a Milkshake, Tomorrow A Brick: Corporate-Backed Political Violence Is Here.

CULTURE

Buzzfeed Bashes 14-Yr-Old Trump Fan, Celebrates Kids in Drag.

TECH

The Lived Experience of Candace Owens.

CULTURE

Al Jazeera: ‘Jews Exploit Holocaust’.

FOREIGN AFFAIRS

Connect
Newsletter Signup.

Sign up to the Human Events newsletter