Overcapacity Threatens China Growth
This article is for subscribers only.
The biggest obstacle facing China’s economy? Massive industrial overcapacity is near the top of the list as the country prepares to launch major reforms but seems intent on keeping gross domestic product growth from falling off too quickly.
“What’s the principal contradiction for China’s economy? I think it is overcapacity. Future reforms and structural adjustment should focus on this problem, or it will be hard to see results,” Wang Jian, secretary general of the China Society of Macroeconomics, was quoted saying in the Chinese media on Nov. 30.