business

What do you think about China overproduction? It will be dangerous?

I still remember my primary hystori lesson about industrial economic crisess and overproduction of that manufacturing time.

Early I saw a post on Cinadailymail.com  you can read the entire issue on their site

Coal, iron ore, steel, cotton, clothing, heavy equipment, ship-building, solar cells, LEDs, and property. All of these commodities at one point or another in the last year have been a hot topic due to overstocks caused by government-influenced overproduction. Falling prices and decreased global demand have crippled many participants in these industries, and many bankruptcies and collapses have occurred. And they are emblematic of the problems that China is going to continue to face in the future.

China’s economic growth has been based significantly on a rapid expansion of government stimulus through monetary expansion over the past several years. And this policy has borne fruit.GDP is up, and growth rates, although not always meeting expectations, regularly exceed the growth rates being achieved in the rest of the world. But this growth comes with a price – an instability in the very markets it seeks to develop and grow.

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One thought on “What do you think about China overproduction? It will be dangerous?

  1. Pingback: Capitalismul, o economie planificata in baza consumerismului | Adelina Maries

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