[PEN-L:11344] Re: China's Overcapacity

[MScoleman@xxxxxxx]

The WSJ was saying the same thing about Japan in the 1950s & 60s.  That said,
what do you think of the reports of Chinas high polution problems and the
bankruptcy of the state silk industry--leading to the layoff of thousands of
workers?
maggie coleman mscoleman@xxxxxxx

In a message dated 97-07-14 20:36:47 EDT, you write:

> I would like to submit for analysis this passage by Joesph Kahn from
>today's WSJ "China's Overcapacity Crimps Neighbors:Glut Swamps Southeast
>Asia's Exports, Roiling Currencies" (A10):
>
>"Fed by overinvestment, China has built up a glut of manufacturing capacity
>so huge that the country could produce nearly twice what it does...As a
>result, China is flooding the US and traditional Southeast Asian export
>targets with cheap goods--crimping its neighbors export-led economies.
>China's own economic picture isn't rosy. Many state-owned factories are
>idle. Domestic growth is relatively weak. High levels of foreign investment
>and an earlier era of cheap credit have left China with a painful hangover:
>excess capacity in autos, tvs, textiles, petrochemicals and a score of
>other major industries...the average Chinese factory uses less than 60% of
>its capacity, a level that would be considered depressionary in other
>countries."
>
>Any comments would be appreciated.
>
>Rakesh
>
>