China industrial overcapacity damaging global economy: study

Beijing

CHINA'S overcapacity in heavy industries is wreaking "far-reaching" damage on the global economy, with steel production "completely untethered" from market demand, the European Union Chamber of Commerce of China said on Monday.

The Asian giant's steel industry makes more than the next four largest producers combined - Japan, India, the US, and Russia - the report said, warning that more than 60 per cent of China's aluminium industry has negative cash flow.