Further evidence that China starts
to follow the bubble neoliberal model, through a systematic, central
planning. Official announcements contain IMF-type phrases like
"structural reforms" concerning the economy, which shows a
trend by the political elite to develop further correlation with the
Western economic bloc.
The news are indicative of a
probable intention by the central authority to lead the country
towards a gradual deindustrialization, in order to meet the Western
neoliberal model of the investment-bubble economy.
From china.org:
Chinese Premier Li Keqiang has
reiterated the urgency and the government's resolve to cut excess
capacity in steel and coal industries, as the country strives to
restructure its economy.
[...]
The State Council didn't
specify the deadline for such cut, but pointed out that China has
cut its production capacity of crude steel by more than 90 million
tonnes in recent years. China will reduce the production capacity
of coal by “a relatively large margin,” according to the
statement.
[...]
“Digesting overcapacity in
steel and coal sectors is an important measure to promote the
supply-side structural reforms,” the statement said, adding that
the process will deliver the industries out of trouble and achieve
upgrading. China's production of crude steel fell 2.3 percent to
804 million tonnes in 2015, the first time the industry reported
negative growth in 34 years. Any newly-added capacity in crude
steel and coal industries will be “strictly controlled,” the
statement said.
The
government should be fully aware of the importance and challenges
in digesting excess capacity, the statement said, adding that the
government will introduce necessary measures to help the laid-off
workers cope with difficulties and find new employment.
|
More than a year ago, Chinese
officials stated that “China is transforming from a major
commodity exporter to a capital exporter, [...] The large going-out
of Chinese capital means the country is able to participate in the
restructuring of global industrial, supply and value chains, which
are the keys to foster new competitive advantages, [...] The
middle-income group will be the main force to stabilize domestic
demand, he said. As the group is expanding, 600 million people will
be middle-income by 2020. Total consumption is expected to be tripled
by then compared with that in 2010.”
[fa.ev/it-has-started-brand-new-market-in]
As hyper-automation seems to
penetrate into almost every sector
of the Chinese economy, it appears that China rushes to adjust the
economy to the new conditions
designed by the powerful economic elites.
Recall
that, the IMF recently included the Chinese currency into the club of
the world's leading currencies that shape the Western monetary
monopoly. As mentioned “China needs to
understand that its invitation to the hard currencies club, is an
effort by the West to control its perspective towards a competitive
monetary system, in which the country may have a leading role. It's
what the bubble-economy elites fear most: the potential of a far more
reliable alternative to the neoliberal monetary monopoly which will
seriously threaten their global dominance.”
[fa.ev/the-western-clowns-to-set-trap-on-china]
Already, China seems to suffer
from the illness of the Western bubble-type economies and starts more
and more frequently to return waves of instability to the global
financial system.
China has to rebalance toward consumption. Exporting capital allows it to import goods, as has been the US model since WW2. The problem is this strategy exports demand which the US became manic about in the 80s, but China need not.
ReplyDeleteTo the extent TPP and other NeoLib BS blackballs it from the Western Rents Extraction Zone, China will be able to manage its imports, which 1B plus Chinese will like, with employment which 1B plus Chinese seem to continue to demand.
There may be something else going on in the background because even as the most westernized facet of the Chinese economy is humiliating itself, there is this: http://blogs.rediff.com/mkbhadrakumar/2016/01/26/china-shows-a-third-way-for-arab-world/
Hard to read from this far away