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
To summarize the Chinese official data released on Friday Sept. 11:
The Good
Manufacturing output: up by 12.3% year on year, better than last month’s 10.8% and higher than consensus.
Steel output: up 29%
Auto production: up 90%.
Urban fixed-asset investment: up 33.0% for the first eight months of the year, which slightly exceeded already-high estimates of 32.5%.
Retail sales: up [...]
I think this article really illustrates the loonacy of Chinese economic statistics.
Factory production up:
“Output at the nation’s factories gained 12.3 percent from a year earlier, the most since August 2008, the statistics bureau said in Beijing today. Local-currency new loans were 410.4 billion yuan ($60 billion), up from 355.9 billion yuan in July, the central [...]
Jim Chanos, who is in the attached post has been shorting Chinese infrastructure plays on the basis that China is building out additional capacity for a world dominated by US consumption that no longer exists.
http://www.cnbc.com/id/15840232?video=1246874316&play=1