China''s economy is experiencing a production capacity excess
Today, the deputy head of the China National Bureau of Statistics Li Xiaochao said that the Chinese economy is faced with a production capacity excess against the background of an industrial sector structural modernization and uncertainty in the world.
In the last year to solve this problem, in China some loss-making coal mines and steel mills were closed. However, in 2017 all the positive changes came to naught, because Beijing has embarked on structural upgrades, replacing obsolete production facilities to more economical and environmentally friendly. In fact, such actions didn’t help to reduce the glut production risk. For the Chinese economy, the situation is also deteriorating due to the fact that the USA is going to tighten the trade protectionism policy, which can lead to a world demand decrease.