Going overseas the solution to China's supply glut

Beijing

CHINA'S problems with industrial overcapacity remain severe and the only way to solve them is by shifting production facilities abroad, where demand still has the potential to grow, an official at the industry ministry said on Wednesday.

A decade of rapid industrial expansion has saddled China with price-sapping supply gluts in sectors such as coal, glassmaking, cement, aluminium and steel, but despite several policy initiatives, the government has struggled to force outdated and loss-making plants to restructure or shut down.