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The Chinese market is suffering from overproduction

Published: Wed, 10/31/2012 - 18:47
By: copy1

The Chinese economy, which recently predicted global expansion appears to meet those difficulties, which experts call the crisis of planned production. Increasing volumes, China sought to literally "fill" goods markets in Asia, Europe and America, losing sight of another important factor, not only the price is important for the consumer, but also the quality of the product. The lack of quality competition sooner or later give decrease profitability. Working "on stock", according to experts, China, maybe meet its own needs in manufactured goods for several years, but, in fact, for a long time to exhaust technological resources. According to experts, China is not much pay attention to the latest technologies, such as do Japan and South Korea. The Chinese economy is used or very cheap development, or purchased from outside. Its innovative sphere hardly developed.

 

Retail sales in China a few months working with little or no growth. The same is true for the export trade. Industrial production in almost all industries has fallen by a third, and in some - half. Most unstable position in automotive and spare parts. Sales in this sector go down too quickly, so the production is not paying off.

 

The only steps the manufacturers and retailers - selling shares at a discount. Selling prices also reduced, which gives space for dumping.

 

Changes in the industry that involve a lot of people, and led to a change in social policy. China's government has forbidden, such as buying more than one single family home in the hope that people will be more funds for the purchase of industrial goods. Obviously, this is not a good move on the part of the state where it is necessary to move to a civilized market, based not on a planned economy, and the healthy competition.