Part II
Citing a Chinese economist, Hong says that China’s “mega-stimulus programme is like ‘drinking poison to quench a thirst’.”
A link to another interesting article. Since this has already been discussed in class, I won’t go into details.
http://www.dnaindia.com/money/report_china-s-economy-on-steroids-may-be-a-global-risk_1321325
Karthik
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Part I
Please find the link to a very interesting article about overcapacity in China. As mentioned last week, China is operating well beyond its domestic demand (primarily in steel industry), and ends up “dumping” in markets around the world. This has caught the attention of the international community as China’s overcapacity in steel equals the total demand for steel in Korea and Japan combined! The swedish secretary of trade told us last week that this might be a significant problem for trade relations going forward. This report has been taken from the European Chamber of Commerce.
http://unclemilton.files.wordpress.com/2009/12/overcapacity-in-china-english.pdf
Lorena & Erik
