China’s New Economic Structure

In a bid to escalate efficiency in the face of outdated capacity, the State Council of China called on commoditized industries to establish more mergers and consolidate.  This was along the lines of the recent announcement from the Ministry of Industry & Information Technology (MIIT) to eliminate more than 2, 000 energy-intensive and polluting factories.  A deadline for this by the MIIT has been set – the end of September for factories from 18 varying industries including construction materials, textiles, dyeing, steel production and more.  Companies not complying with such instructions will not be able to get loans, government approval for new investments or access to more land.  As well, they may even lose their production license and pollution permits.  Such news is important for all those connected with China’s economy and investment (such as those at ARC China, including MD and founder Adam Roseman) since this kind of economic restructuring is set to “bring the country greater independence within the global economy as it will allow the country to increase its bargaining power for imported commodities and allow for further decoupling from the weakened traditional export markets in North America and Europe.”