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Tuesday, November 25, 2014
Internationalization Trend of Production Capacity Is a Double-edged Sword
ANBOUND

Since the overcapacity problem can't be resolved in a short term, currently, Hebei Province is considering sending the excessive capacity overseas. ANBOUND research team believes that although internationalization trend of capacity can offset the loss caused by the reduction of domestic demand to some extent, and can help to maintain the operation of overcapacity industries, it is actually a double-edged sword. On the one hand, many national infrastructure construction will be accelerated, which will bring new strategic opportunities for overcapacity industries. On the other hand, with the input of Chinese overcapacity gradually increasing, there will be more international trade conflicts. A small careless act may cause great loss. Thus, careful actions should be taken to deal with overcapacity problem by the internationalization of production capacity.

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