Chinese overinvestment could strain trade
BEIJING — China's stimulus spending has fueled massive overexpansion in industrial capacity that could drive a surge in low-priced exports amid weak global demand, possibly igniting a protectionist backlash abroad, a European business group warned Thursday. Economists and business groups have warned that Beijing's 4 trillion yuan ($586 billion) stimulus could lead to overinvestment. It is pumping money into the economy mostly through building airports and other public works projects, which has driven expansion at steel mills and other construction-related industries. China faces similar problems in aluminum, cement, plastics, refining and production of wind power equipment, the group said. In...
Original Article: Forum: News/Activism
Tags: Airports, Aluminum, Beijing China, Business Group, Business Groups, Cement, Economists, Economy, European Business, Global Demand, Plastics, Protectionist Backlash, Public Works Projects, Steel Mills, Stimulus, Trillion, Wind Power, X27, X97, Yuan