China pushes exporting of industrial capacity
China and Brazil signed several deals on industrial capacity this week during Chinese Premier Li Keqiang’s visit. They are part of a campaign in which China is selling its under-utilized industrial capacity abroad.
Industrial capacity cooperation generally means that China moves entire production lines to other countries or sets up factories with local partners abroad.
On May 16, China’s cabinet listed sectors for more capacity cooperation, including automobiles, aviation and aerospace, chemicals, construction materials, electric power, machinery, maritime engineering, nonferrous metals, railways, shipbuilding, steel, telecommunications and textiles.
The cabinet decided to expand international industrial capacity cooperation at a time when China is struggling with overcapacity.