China s Excess Capacity Nightmare

Under these circumstances, large excess capacity develops and commodity prices fall.

In 1998, excess capacity was estimated to be 275 Mt. worldwide.

As a result, China now faces the problem of short term excess capacity.

But the more immediate problem remains deflation, given high unemployment and excess capacity.

China s excess capacity problem reveals a serious defect in its socialist market economy.

Many underlined the need to reduce excess fishing capacity and to maintain capacity at levels commensurate with the sustainability of target fish stocks.

Excess capacity and falling growth are mutually reinforcing. Not only does excess capacity have a negative impact on growth perhaps more important, sharply declining growth also contributes to massive redundancy in some industries (especially resources and the heavy and chemical industries).

Cheap funding and land revenue have led to excess infrastructure and industrial capacity without adequate market discipline.

The legacy of excess real estate capacity and over leveraged households makes recovery all the more difficult.

Recourse to the latter option means that, even without excess capacity, OPEC can still be in the driver s seat.

To correct China s excess capacity problem would require the relevant enterprises, whether SOEs or private firms, to exit the market.

First, in a situation of widespread unemployment and excess capacity, short run output is determined primarily by demand, not supply.

Thus, firms have little pricing power, owing to excess capacity, while workers bargaining power is low, owing to high unemployment.

Record low interest rates in 2001, 2002 and 2003 did not lead Americans to invest more there was already excess capacity.

State orchestration should instead be focused on fighting corruption, reducing transaction costs, promoting competition, lowering entry barriers, and removing excess capacity.

Moreover, the younger countries are typically emerging markets, which have neither the scale nor the capacity to absorb the world s excess savings efficiently.

Given the high levels of excess capacity and unemployment in Europe and America, quantitative easing is unlikely to trigger a bout of inflation.

First, consumption has to give way smoothly to investment, as past excess capacity is worked off and as expansionary policies in industrial countries normalize.

It is also correct that if OPEC had excess capacity, it would have already used it to flush out speculators to bring oil prices down.

OPEC can regain control in one of two ways use its claimed excess capacity to flush out speculators, or use its financial surpluses to overtake them.

Or else they can wait until the overhang of excess capacity diminishes, capital goods become obsolete, and the economy s internal restorative forces work their gradual magic.

Moreover, given the magnitude of excess capacity in real estate, lower interest rates will do little to revive real estate prices, much less inflate another consumption bubble.

Such assumptions are not applicable to most ESCWA member countries, which suffer from chronic unemployment and underemployment, excess capacity, inadequate utilization of resources, and widespread market distortions.

The financial system has yet to address adequately the challenges of financial inclusivity, particularly funding of SMEs and rural areas, and exposure to excess capacity in selected industries.

With so much excess capacity in real estate, confidence will not recover to its pre crisis level anytime soon, regardless of what is done to the banking sector.

The ultimate irony is that there are simultaneously excess capacity and vast unmet needs and policies that could restore growth by using the former to address the latter.

Brazil attributes the problem of excess fishing capacity not only to the illegal, unreported and unregulated fisheries, but also to the oversized fishery fleets of some developed States.

The small excess of quarks over antiquarks led to a small excess of baryons over antibaryons.

In a document approved by the State Council on September 26, the National Development and Reform Commission (NDRC) warned of serious excess capacity in a wide variety of sectors.

Excess capacity has been a priority for the State Council since 2005, when it issued industry by industry restrictions on new projects and targets for shutting down inefficient production.

With a new round of stimulus, China s excess production capacity and underused outlays (for example, built up real estate assets) could be mobilized immediately, restoring 9 annual GDP growth.

A tax on oil, however, does not entail excess burdens. On the contrary, it implies excess benefits .

Politics aside, property bubbles leave in their wake a legacy of debt and excess capacity in real estate that is not easily rectified especially when politically connected banks resist restructuring mortgages.

Accordingly, the general tenor and direction of the market is expected to change, with prices remaining at present levels or falling further and excess capacity possibly again emerging as a concern.

If you relieved the excess demand for financial assets, you also cured the excess supply of goods and services (the shortfall of aggregate demand) and the excess supply of labor (mass unemployment).

Access is good excess is bad.

The sound principle is excess collateral.

This enabled a consumption binge, which meant that debt was created without a corresponding asset, and encouraged excessive investment in real estate, resulting in excess capacity that will take years to eliminate.

Excess of authority or contravention of instructions

Mill saw that excess demand for some particular set of assets in financial markets was mirrored by excess supply of goods and services in product markets, which in turn generated excess supply of workers in labor markets.

It is estimated that around 27 billion a year in subsidies to the fishing industry worldwide have generated excess fishing capacity that exceeds by a factor of two the ability of fish to reproduce.

The risk is that Lin s warning will be interpreted as an argument for sticking with an investment led model, which would imply more low return public sector projects and excess capacity in selected industries.

The implication of this was clear. If you relieved the excess demand for financial assets, you also cured the excess supply of goods and services (the shortfall of aggregate demand) and the excess supply of labor (mass unemployment).

Rather, it will increase banks excess reserve balances.