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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: RealMuLan who wrote (327)	8/13/2003 10:14:16 PM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

Investment fever is running too high, says China Jonathan Watts in Beijing Thursday August 14, 2003 The Guardian A senior Chinese minister warned yesterday that the world's fastest growing economy is in danger of overheating as expansion outstrips power supplies, [AD] ADVERTISEMENT threatens production quality and raises the risk of oversupply. In the first six months of the year, China sprinted forward at a blistering pace of 8.2%, but then concerns about the risks were tempered by Sars. With the Sars outbreak under control, policymakers have started to speak out about the rise in the economic temperature, pushed up by the explosive growth of small, low quality and poorly regulated steel, cement and car firms. "If it is not cooled, the investment fever in some industries will heavily affect China's robust economic growth," said Ma Kai, the national development minister, in a China Daily interview. guardian.co.uk

To: RealMuLan who wrote (327)	8/14/2003 4:41:28 PM
From: BubbaFred	Read Replies (1) \| Respond to of 6370

Mr. Ma and Mr. Lin, they both have excellent points and hopefully the national leadership will enforce policies that curb the booming growth. "... National Development and Reform Commission (NDRC) Minister Ma Kai warned: "If not cooled, the investment fever in some industries will heavily affect China's robust economic growth.'' "Excessive growth in some sectors is putting a strain on transportation and power supplies, driving up the prices of raw materials and damaging industries across the nation, warned the NDRC -- China's top economic management body. " "Ma said many of the newest projects rely on outdated technology and equipment, affecting their ability to control pollution. They also have a tendency to consume high levels of energy. " "Lin Yueqin, an economic researcher with the Chinese Academy of Social Sciences said the automobile sector is a typical example of the unpredictable situation, with existing producers competing with each other to expand their production capacity."