The EU Chamber of Commerce in China asked Beijing to take urgent measures to neutralize excess industrial production, telling that worthless attempts to do this have already generated a real flood of excess goods, which may destabilize the world economy.
Chinese producers, hurt by the global economic downtime, have to send their ready-made products, ranging from solar panels to steel and tires. Obviously, that’s because they don’t have an opportunity to sell this stuff at home.
On Monday, the EU Chamber, representing up to 1.600 members in Chana, told that excess production is plaguing industrial sectors, including cement, steel and chemicals. Furthermore, it’s threatening the consumer economy, especially such sectors as pharmaceuticals, consumer electronics, apparel and food.
From 2008 till 2014, the usage rate for the country’s steel sagged from 80% to 71% respectively. Production soared from 513 million to 813 million metric tons during that period.
Last week, representatives of European steel industry, escaping from competition with cheap China’s steel, organized a series of protests against unfair trade practices in Brussels. Furthermore, they are afraid that the situation might worse if this year the European Union dares to grant market-economy status to this country.