Where is the demand to absorb the excess capacity? This production is leading to dumping which will lead to more conflicts in trade.
http://online.wsj.com/article/BT-CO-20090930-718755.html
I thought this was great. My favorite quote from a Chinese statistician was: “I can rearrange the stars in the sky above because I have statistics.”
http://www.businessweek.com/globalbiz/content/sep2009/gb20090928_194572.htm
Without constant stimulis Chinese excess capacity will likley continue to weigh on prices.
http://blogs.wsj.com/chinajournal/2009/09/25/idle-factories-still-restraining-china%e2%80%99s-investment-inflation/?mod=rss_WSJBlog?mod=chinablog
This article is illustrative of what will prove to be a very long process of China reforming its economy to be more self sufficient by selling Chinese manufactured goods to Chinese consumers. They have a long way to go and I doubt they will have sufficient consumption to absorb their excess capacity for years to [...]
The initial battles of the trade war continue after the G-20.
http://www.cnbc.com/id/33042119
Hendry captures the sentiment regarding Chinese capacity and demand.
http://www.ft.com/cms/893ac9c8-757e-11dc-b7cb-0000779fd2ac.html?_i_referralObject=6506752&fromSearch=n
The Chinese have built capacity for a world in which the US has an ever growing ability to consume more. With their stimulus efforts they have added to that capacity. Once the government directed investment in capacity has been exhausted deflationary pressures should mount.
Seems that the EU is also reacting to the Chinese attempt to export the product of their excess capacity.
http://www.cnbc.com/id/33014576
This is more evidence that the Chinese are building out capacity and trying to export the product of that capacity. I think a trade war is inevitable given the structure of the Chinese stimulus and lending initiative.
http://online.wsj.com/article/SB125375168190335985.html#mod%3DWSJ_hpp_LEFTTopStories%26project%3DG20-090923%26articleTabs%3Darticle
Recognition of the Chinese expenditures in investment as leading to pressures on consumption growth is becoming more widely accepted.
http://www.bloomberg.com/apps/news?pid=20601068&sid=aKNJbNHyc9oI