China’s commerce minister warns against over-expansion

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BEIJING: China’s commerce minister on Friday warned industries and companies not to over-expand, after the collapse last year of a key unit of the world’s biggest solar firm.

The country’s decades-long boom has turned it into the world’s second-largest economy and a key driver of global growth, but at the same time major internal imbalances have developed.

China’s Suntech Power, once the world’s biggest maker of solar cells and panels, sought market share by driving down prices to levels some competitors claim were loss-making. However, its main Chinese unit, Wuxi Suntech, filed for bankruptcy last March with debts of hundreds of millions of dollars.

“What we should take into account is that some industries should not develop overly fast, particularly expand blindly,” Gao Hucheng told reporters.

 

Read more: http://www.brecorder.com/world/southeast-asia/161189-chinas-commerce-minister-warns-against-over-expansion.html

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