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Strategies & Market Trends : Selling to China -- Ignore unavailable to you. Want to Upgrade?

To: Julius Wong who wrote (133)	1/29/2004 6:01:07 AM
From: Micawber	Respond to of 450

Problems Lurk Behind The Rosy China Economy China's official economic growth figures are out, and while they do tell of a strong economy fueling much of the regional and even world-wide growth, they also point to tremendous production capacity, which, some economists say, the system cannot support... ...State-owned factories account for a good portion of products that the government buys and puts in warehouses, products like bicycles and steel tools. Grain is also bought en masse by the government in order to keep farmers solvent. This often leads to overproduction because producers know that markets are secure. The private sector is guilty as well. Automobile production by private companies is probably the sector best known to be producing at rates way beyond what the market wants. Companies in China have the capacity to make 2.8 million cars. The market only takes about 1.8 million of them... ... The International Finance Corporation, for instance, the World Bank's investment arm, has stopped financing or investing in the manufacturing industry. Says one source at the IFC: 'It's already over-invested.' feeds.bignewsnetwork.com