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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.
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23 Articles

The Border MailThe Border Mail
+3 Reposted by 3 other sources
Lean Left

The end of cheap Chinese cars? Government vows to end price wars

The Chinese government wants consumers to pay more for new cars as it looks to combat hyper-competitive price...

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Associated Press NewsAssociated Press News
+7 Reposted by 7 other sources
Lean Left

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
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NBC San Diego broke the news in San Diego, United States on Sunday, July 20, 2025.
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