EuroCham warns China on overcapacity issue: “It leads to protectionism

BEIJING - The European Chamber of Commerce in China has warned of what it calls ‘increasing dangers’ in overcapacity in eight of China’s key industries, and in a new report examines in detail the causes and consequences of overcapacity while analysing developments that have taken place since the Chamber published its original report on this topic in 2009.

The reports examines regional protectionism, weak regulatory enforcement, low resource pricing, misdirected investment, inadequate protection of intellectual property rights and emphasis on market share. It puts forward 30 recommendations.

EuroCham President Jorg Wuttke told a media conference that China’s central leadership “can’t outgrow this problem any more. “Politicians need to realise that [Chinese] overcapacity leads to job losses, which leads to protectionism in Europe,” he said. www.eurochamvn.org/ www.webershandwick.cn