Market intervention

China's renewable energy sector, such as wind farms, has been overpromoted by the government. Photo: Xinhua

China must avoid creating more problems with action on overcapacity

At the Central Economic Work Conference late last year, overcapacity was highlighted as a problem prioritised for action this year. So, just before the Lunar New Year, 12 ministries and state commissions jointly rolled out a plan to push for mergers in key industries including carmaking, steel, cement, shipbuilding, aluminium, rare earths, electronics, pharmaceuticals and industrialised agriculture.

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