[Marxism] China's nationalized sector has key role in current gains

Marv Gandall marvgandall at videotron.ca
Mon Oct 5 12:07:17 MDT 2009


The issue is not really whether there is Chinese overcapacity in steel - the
Chinese themselves admit to it - but whether they will be able to make the
necessary planned adjustments or whether it is going to lead to crisis in
the Chinese economy, as Artesian has consistently warned with respect to
this and other sectors. The debate over the sustainability of China's
economic growth on the list has mirrored the debate within academic circles,
corporate head offices, central banks, and finance ministries worldwide.

Here is a report on the Chinese authorities' recognition of the problem and
their response to it. Artesian may have already linked to it:

http://www.theglobeandmail.com/report-on-business/crash-and-recovery/china-orders-crackdown-on-industrial-overcapacity/article1306489/

Here is John Ross, the China specialist (and former IMG leader) on the
debate about China's economic prospects.

http://ablog.typepad.com/keytrendsinglobalisation/2009/09/new-york-times-recognises-success-of-chinas-economic-stimulus-package.html



----- Original Message ----- 
From: "Lüko Willms" <lueko.willms at t-online.de>
To: "Marv Gandall" <marvgandall at videotron.ca>
Sent: Monday, October 05, 2009 11:42 AM
Subject: Re: [Marxism] China's nationalized sector has key role in current
gains


S. Artesian (sartesian at earthlink.net) wrote on 2009-10-03 at 11:22:23 in
about Re: [Marxism] China's nationalized sector has key role in current
gains:
>
>
> We know that in the steel industry, overcapacity for the domestic market
> in
China is around 25% with the export market severely impacted by the global
contraction.

  Who is "we" and how do they "know" that?

  All other "we"s know that China's demand for steel was what drove the
world market prices up, before the capitalist crisis, that is. I can't
believe that
China is actually _exporting_ steel. I think they need(ed) more steel than
they
could produce themselves and therefore had to _import_ steel.


Cheers,
Lüko Willms
Frankfurt, Germany
--------------------------------

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