China Tells

FT London: China government official warns that the country need to address the over capacity in some of the heavy industries such as Steel and Aluminum. Thanks to the record stimulus program, China’s heavy industry has not been hit that hard as happened in the Western country. However, a potential downside of the stimulus is that these heavy industries continue to expand to an over supplied situation. Such a result is not desirable as it complicates China government’s effort to bring down the trade deficit with US and also muddles with government’s agenda to push for ‘green energy’. The challenge remains though on how to bring down the over capacity without jeopardizing the economic growth.

伦敦金融时报报道，中国政府最近多次指出国内重工业产能过剩，政府可能会出手干预减少过剩产能。由于政府主导的银行大贷款，钢铁和铝产业大受裨益，但由此也伴生出对过剩产能的担心。