As the People’s Republic of China — the PRC — develops its “Go Global” suite of policies, it has expanded international capacity cooperation as a way to adjust to the “new normal” of low industrial growth.

It’s a novel approach to overcapacity — where an industry is capable of building or producing more than it can sell — which was caused in the PRC by the 2008–2009 spending stimulus that flooded traditional industries. Steel, cement, aluminum, paper, glass, and everything from pork production to robots are in 2017 overwhelmed by cyclical overcapacity.

Extending the lifespan for reform in the PRC’s industrial economy by moving production offshore from industrial-policy-protected provinces into the global system is an innovative solution to the country’s industrial slowdown.

Read the transcript

http://bit.ly/2xqb1Dv

Read the blog post

https://www.asiapathways-adbi.org/2017/07/the-prcs-international-capacity-cooperation-exports-both-industrial-capacity-and-financial-risk/

Author

Tristan Kenderdine

https://www.asiapathways-adbi.org/author/tristan-kenderdine/