ASR in The Economist: ‘What Xi Jinping gets wrong about China’s economy’
09th MAY. 2024
In The Economist’s recent piece, Adam Wolfe from Absolute Strategy Research discusses China’s overcapacity in the property sector and resulting emergence as the world’s biggest exporter of equipment.
“The industries suffering most from overcapacity today are casualties of China’s ill-starred property sector, where private and state developers have long vied with each other. A collapse in property sales has left many neighbouring industries looking oversized. Adam Wolfe of Absolute Strategy Research cites the example of excavators. Until mid-2021, China bought most of the diggers it produced. But domestic sales have plunged, meaning China has abruptly emerged as the world’s biggest exporter of such equipment. Another case is cement, and similar materials, where capacity utilisation is down to 62%.”
