The Big Call

Beijing gets tough on steel

  • Published 01 Oct 2009

Tough new statements on the need to eliminate overcapacity in steel foreshadow industry streamlining. However, market forces may pull in the opposite direction.

For much of this year, China Confidential has concentrated on the brighter side of the Chinese economy. We have traced the rise in consumer demand, the implementation of stimulus spending, the property market rebound, the return of migrant workers to factories, the recovery in demand for exports, rural China's improving fortunes, the economic resilience of lower-tier cities, the embrace of green technologies, the splurge in new lending and several other aspects of the country's return to rapid GDP growth.

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