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Tackling overcapacity in China for cement, steel and other products- the example of Changzhi's cement factories

08/28/2015

There is huge overcapacity in the cement, steel and other industries in China. Schuman of the NYT describes the situation in the city of Changzhi, with a population of 3 million. Many of the local cement factories are running at a third of the capacity, and the government's focus on keeping workers from being unemployed to preserve social stability, makes it harder to divert capital and labor to new productive uses. There is increasing difficulty in areas away from the major cities of Shanghai and Beijing.

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