China Industrial Overcapacity Has Peaked, EIU Report Says
- Stronger global demand seen for consumer goods, electronics
- Protectionist moves partly about competitveness in green tech
Laborers work at an iron and steel plant in Huaibei, China.
Photographer: AFP/Getty ImagesThis article is for subscribers only.
China’s overall manufacturing overcapacity has peaked as global demand picks up in consumer sectors, the Economist Intelligence Unit said, predicting trade tensions will persist due to Chinese companies’ rising competitiveness.
“We consider the worst of China’s excess industrial capacity to have already passed,” the EIU said, adding that a slowdown in investment by firms seeing lower profitability will lead to slower capacity growth.