China struggles with industrial overcapacity and declining prices

smh.com.au

China faces significant industrial overcapacity, particularly in sectors like lithium batteries, solar panels, and steel, with over half of production in these areas unprofitable, according to Goldman Sachs. Policymakers are concerned about declining prices and trade tensions, but Xi Jinping's government has limited influence over private enterprises. Exports accounted for 37% of battery production last year, complicating demand stimulation efforts amid geopolitical tensions.


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China struggles with industrial overcapacity and declining prices | News Minimalist