Analysis-Industrial Pruning Won’t Pull China Out of Deflation as Quickly as Last Time
CHINA, JUL 21 – Chinese authorities target excessive competition and overcapacity in major sectors, aiming to stabilize markets and improve industry profitability amid ongoing price wars.
- On Friday, the Ministry of Industry and Information Technology and partners held symposia, instructing companies to take action and reverse the slide.
- The mismatch between capacity and demand, Qiushi wrote, reflects overcapacity that intensifies industry competition.
- The industry association said, "The top 10 makers of glass for solar panels agreed on June 30 to shut kilns and cut production by 30%."
- A rally in under-pressure stocks occurs as efforts to curb price wars reduce trade friction with the United States and Europe, boosting market confidence.
- A major obstacle is provincial governments wanting to protect local companies and jobs; an expected end-July Politburo meeting might issue more industry guidelines.
Insights by Ground AI
Does this summary seem wrong?
23 Articles
23 Articles
Analysis-Industrial pruning won’t pull China out of deflation as quickly as last time
BEIJING (Reuters) -China’s hardened rhetoric against price wars among producers is raising expectations Beijing may be about to kick off industrial capacity cuts in a long-awaited, but challenging, campaign against deflation that carries risks to economic growth. Communist Party leaders pledged this month to step up regulation of aggressive price-cutting, with state media running its harshest warnings yet against what it describes as a form of i…

+7 Reposted by 7 other sources
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.
·United States
Read Full ArticleCoverage Details
Total News Sources23
Leaning Left8Leaning Right2Center4Last UpdatedBias Distribution57% Left
Bias Distribution
- 57% of the sources lean Left
57% Left
L 57%
C 29%
14%
Factuality
To view factuality data please Upgrade to Premium