#Overcapacity

China investment decline deepens as Xi Jinping attacks ‘reckless’ spending Weakest retail sales growth in three years underlines challenge for Beijing to cut waste and boost domestic demand

2 months ago

#China’s productivity advantage and #overcapacity mean that producer price inflation is low and #China will continue to export a strongly #disinflationary impulse to the rest of the world, chart #GoldmanSachs

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TinJar

@tinjar.bsky.social

3 months ago

www.ft.com/content/2f3d...

Need to take FULL ADVANTAGE of #China #overcapacity in #manufacturing #solar #batteries #EV to get rid of #oil #gas #coal #cars while also doing #efficiency #walk #bike #bus #train

It is batshit insane to do otherwise for reasons #EU #US #industry keeps throwing up.

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Rachael Revesz

@rachaelrevesz.bsky.social

3 months ago

@neweconomybrief.bsky.social finds one way to mitigate any AI-induced financial crisis - stop rushing to grant planning to every developer wanting to get rich and build a data centre. #overcapacity #ai #datacentre

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European Steel

@eurofer-eu.bsky.social

4 months ago

🔍 Today, the @europarl.europa.eu INTA Committee will debate the new #steel #trade measure proposal – a key step to tackle global #overcapacity and protect 🇪🇺’s industry.

💪 We call on the @europarl.europa.eu & @consilium.europa.eu to adopt it swiftly, so it can enter into force by early 2026.

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Navigating Troubled Waters Xi Jinping, Monopolized Power, Overproduction, and the Mandate of Heaven

4 months ago

#China's #overcapacity

And the #impact

#Deflationary or #Inflationary?

acemaxxanalytics.substack.com/p/chinas-ove...

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Hans Sandberg

@nordic-link.bsky.social

4 months ago

Xi picked another path, that of the late veteran leader Chen Yun, which he celebrated this past June.
#Xijinping #MaoZedong #ChenYun #DengXiaoping #China #economicreforms #overcapacity #tradewar open.substack.com/pub/nordicli...

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Kuehne+Nagel Tightens Belt Amid Overcapacity, Eyes Long-Term Efficiency Gains #KuehneNagel trims costs with a #CHF200million plan amid #overcapacity. #CEO StefanPaul eyes efficiency, automation, and SME growth, as air and sea logistics volumes rise despite #marginpressure in Q3 2025.

4 months ago

#China #overcapacity, which could create headwinds to global
#manufacturing and lower DM GDP growth by 0.1-0.3%Y, chart #GoldmanSachs

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Breakbulk.News

@breakbulk.bsky.social

4 months ago

#KuehneNagel trims costs with a #CHF200million plan amid #overcapacity. #CEO StefanPaul eyes efficiency, automation, and SME growth, as air and sea logistics volumes rise despite #marginpressure in Q3 2025.

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Borderlex

@borderlex.net

5 months ago

EU doubles down on steel protection - Borderlex The European Commission tabled a regulation that would tighten the levels of industry import protection afforded by an import safeguard introduced in 2019.

The #EU justifies reducing #steel and #steelproduct quotas and increasing #tariffs to address #overcapacity, currently at 620m tonnes globally. Risks alienating #bilateral #trade partners and neighbours.
@robfranciseu.bsky.social reports:
borderlex.net/2025/10/07/e...

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European Steel

@eurofer-eu.bsky.social

5 months ago

Tomorrow, @ec.europa.eu will unveil its #steel trade defence proposal to tackle global #overcapacity.
At last week's Emergency Steel Social Summit, co-hosted with @industrialleurope.bsky.social, steelworkers & steelmakers sent a united message: the time for decisive action is NOW!
Watch this 👇📺

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European Steel

@eurofer-eu.bsky.social

5 months ago

“The current safeguards are not working”, said our Director General, Axel Eggert.

We expect a high level of ambition from the Commission's upcoming EU steel #trade defence proposal to effectively address global #overcapacity, secure sustainable capacity utilisation protect jobs.

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Afriforesight

@afriforesight.bsky.social

5 months ago

The plan addresses chronic #overcapacity, weak demand, environmental pressures and growing trade disputes tied to cheap exports. If strictly enforced, it could slow supply growth, raise prices and accelerate industry consolidation as weaker or polluting mills shut down.

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Thomas Schmall

@oxpal.mastodon.coffee.ap.brid.gy

5 months ago

Original post on mastodon.coffee

I'm watching videos on China's economy nearly obsessively... and this one is a very good overview that chimes with most of the other sources.

China's progress in the last decades has been impressive, but the CCP maneuvered China into a corner. Paired with a system that doesn't pivot easily or […]

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Alicia Garcia Herrero 艾西亞

@aligarciaherrero.bsky.social

6 months ago

China has a new overcapacity fix: stern lectures Zhang Xiong, a general manager at China's state-owned Sichuan 15th Construction Company, delivered a simple message when he spoke to staff last month: stop losing money.

Some thoughts for @reuters.com on #China's #overcapacity: “However, the lectures could ultimately make the problem harder to resolve if they make people afraid to acknowledge losses and they start hiding them instead. "

www.reuters.com/en/china-has...

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6 months ago

#China’s last struggle with #overcapacity showed the limits of capping production alone to fix the problem, with a stockpile of unsold homes and deep factory-gate #deflation - chart @economics www.bloomberg.com/news/article...

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Deflation and overcapacity push China toward new policy path Investing.om -- China’s economy is shifting onto a new policy path as deflationary pressures and industrial overcapacity weigh on growth. Inflation has remained below target, with the GDP deflator negative for nine consecutive quarters. That persistent disinflation has forced policymakers to rethink their strategy after this year’s growth goals were largely set with traditional stimulus in the first half. The government’s “anti-involution” campaign, which aims to tackle entrenched deflation and excess production, marks a significant pivot. Analysts compare it to the supply-side reforms of 2015 to 2018, but the current industrial backdrop is different. Emerging industries such as solar, electric vehicles and batteries are led by private companies rather than state-owned enterprises. That means policymakers must create incentives rather than rely on directives to consolidate supply. This makes the process more complex and points to a gradual, market-oriented approach. While coal, steel and cement are already seeing production cuts reminiscent of the earlier reform cycle, the bigger challenge lies in curbing oversupply in downstream sectors. So far, authorities have pledged to monitor prices and production volumes, but substantive action has been limited. Rising U.S. tariffs and broader geopolitical fragmentation could add further pressure on domestic producers to restructure more quickly. Morgan Stanley research shows Chinese supply chains have shifted toward higher value-added segments in global production. Policymakers appear to be steering the economy away from low-value output and towards sectors that provide greater resilience against external shocks. Despite the shift, reforms are unlikely to alter the longstanding pattern of using investment to meet real GDP targets in the short term. Instead, modest policy adjustments and structural reforms are being introduced gradually. Proposals include altering local government incentives, shifting from value-added taxes toward direct taxation, and expanding social welfare programs. Early steps such as consumption subsidies, birth-related benefits and elderly care vouchers remain limited in scale. The upcoming 15th five year Plan is expected to place greater emphasis on structural reforms rather than solely industrial policy. Economists argue that durable progress against deflation requires systemic changes, including recalibrating fiscal incentives and strengthening household consumption. Given the scope of reforms needed, the report notes that China’s battle against deflation will likely be prolonged.

6 months ago

Click Subscribe. #ChinaEconomy #Deflation #EconomicPolicy #Overcapacity #MarketTrends

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Tobias Merkendorf

@tmkdf.eurosky.social

7 months ago

China’s BYD breaks delivery growth streak as EV price war reshapes competition While other major Chinese electric vehicle makers, including Li Auto and Nio, also reported a drop in July deliveries.

ICYMI

Chinese #automobile manufactures are stuck in a price war. There is not enough demand domestically to absorb the cars built.

And demand abroad is also not sufficient.

Seems like #overcapacity is a thing.

#byd #xiaomi

www.cnbc.com/2025/08/04/c...

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@lisareadsthenews.bsky.social

7 months ago

China's solar giants quietly shed a third of their workforces last year BEIJING, August 1 (Reuters) -China's biggest solar firms shed nearly one-third of their workforces last year, company filings show, as one of the industries hand-picked by Beijing to drive economic gr...

China's #solar firms shed their workforces as one of the industries hand-picked by Beijing to drive economic growth grapples with falling prices & steep losses from #overcapacity — China's solar giants quietly shed a third of their workforces last year By Colleen Howe www.reuters.com/sustainabili...

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Why Chinese overcapacity is seen as a geopolitical threat Investing.com -- China’s industrial overcapacity is now viewed not just as a source of global disinflation, but as a growing geopolitical threat, according to Capital Economics. While recent U.S. inflation data show tariffs under President Trump are starting to lift prices (Capital Economics expects core goods inflation to reach 4.4% by year-end), the far more significant development is unfolding in China, said the firm. “The real action in global goods inflation – or, more precisely, disinflation – is unfolding not in America, but in China,” the analysts wrote. Capital Economics explained that China’s export prices have plunged over 20% since their pandemic-era peak, reducing goods prices in advanced economies by around 0.4 percentage points. They added that factory gate prices for consumer durables are falling at their fastest pace since the 2009 financial crisis. But this isn’t due to productivity gains. “Vicious price wars are raging across Chinese industry as firms fight to maintain market share and offload excess capacity,” Capital Economics explained. The analysts believe Beijing is trying to end what it calls “disorderly competition,” but the problem is said to be structural. Capital Economics says China’s investment-heavy growth model, where investment still accounts for roughly 40% of GDP, is leading to “chronic overcapacity, wafer-thin margins and ever-diminishing returns.” With consumption weak and real estate in decline, excess capacity is reportedly flooding global markets. “One estimate suggests as many as 30% of China’s manufacturers are now losing money,” sustained only by local government support and soft loans, commented Capital Economics. This has triggered alarm not just in Washington, but in Brussels, Tokyo and emerging markets, stated the firm. “What was once an engine of global growth is fast becoming a source of geopolitical friction,” Capital Economics concluded, warning that China’s current model now threatens global economic stability and order. With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

7 months ago

Click Subscribe. #Geopolitics #China #Economy #TradeWar #Overcapacity

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Markets bet Beijing is getting serious about China’s overcapacity By Lewis Jackson, Jiaxing Li and Amy Lv BEIJING/HONG KONG (Reuters) -Commodity prices from steel to polysilicon have surged this month as Chinese investors bet Beijing is finally serious about addressing overcapacity across the world’s second-largest economy. Prices for nine industrial commodities including coal, steel, polysilicon, a building block for solar panels, alumina and lithium carbonate have climbed by 10% to 68% this month while share prices in steelmakers, solar panel manufacturers and clean energy companies have outpaced the benchmark CSI 300 Index. The moves coincide with Beijing’s call on July 1 to tackle "disorderly price competition," or overcapacity, and an acknowledgement it intends to deal with a persistent problem fuelling deflation at home and trade barriers abroad. Since then, state media has amplified that message with warnings against involution, a now-popular reference to competition so fierce it becomes self-destructive. "I think that addressed a big concern for investors, which is the profit margin squeeze on some of the very promising sectors," said Tai Hui, Asia Pacific chief market strategist at JPMorgan Asset Management. Champions of the old economy including steel and coal and newer industries such as solar panels and electric vehicles are grappling with overcapacity and falling prices, which had previously prompted many warnings but little action. This month, some of the reactions from ministries, regulators and local governments suggest Beijing’s signal is being received. Two days after a top-level policy meeting on July 1 called for action, the industry ministry pledged to curb price wars in the solar sector. China’s photovoltaic industry index is up about 11% this month. Polysilicon prices are up 68% after local media reported that the two biggest producers were preparing to buy up smaller rivals and consolidate the sector. Last week, a lithium miner in northwest China was temporarily shut for non-compliant mining, leading speculators to bet that more closures could follow. This week, prices for coking coal used to make steel rose to their daily limit for three consecutive sessions after the National Energy Administration ordered inspections at mines to check for excess production. To be sure, Beijing has pushed supply-side reforms before, most recently about a decade ago to cut production in the cement, steel, glass and coal industries. However, the task is more difficult this time due to higher levels of private ownership in many of these industries, misaligned incentives at the local and national levels, and limited options for other sectors to absorb lost jobs. It’s unclear how far authorities are determined to go in curbing production and which other sectors they may target. China’s leadership is sending a clear and positive signal about their commitment to address overcapacity, but progress is likely to be much slower this time around and it could take a year or two to see improvement in company profits, said Laura Wang, Chief China Equity Strategist for Morgan Stanley based in Hong Kong. "In the next three to six months, we are relatively conservative in terms of how much actual capacity shutdown you would be able to see," Wang said. With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

7 months ago

Click Subscribe #China #Overcapacity #Beijing #StockMarket #Economy

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Alicia Garcia Herrero 艾西亞

@aligarciaherrero.bsky.social

7 months ago

Chinese investors snap up stocks on hopes for an end to price wars and overcapacity China’s stock market is buzzing over government promises to tackle price wars that have hurt profits and worsened global trade tensions

Here are my views for @washingtonpost on #China's #overcapacity. "Recent comments by top Chinese economic officials suggest they realize something needs to be done. How much is action versus words, I don’t know, but I do think it’s a big problem for China.”

www.washingtonpost.com/business/202...

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