Industrial Capacity Cuts May Not Quickly Alleviate China's Deflation

Reported about 14 hours ago

China's intensified efforts to curb aggressive price wars are set to initiate industrial capacity cuts in hopes of combating deflation, a move reminiscent of supply-side reforms a decade ago. However, economists predict that this battle will be more complex now, given the challenges of high private ownership, local incentives, and rising youth unemployment. Any capacity reduction is likely to happen slowly to monitor its impact on the economy, with high-stakes risks to employment and growth involved.

Source: YAHOO

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