The European Chamber Nanjing Chapter is delighted to invite you attend a dialogue of China Economic Concerns: Overcapacities and Financial Sector Reform, on 6 April 2016. We are pleased to have Mr. Joerg Wuttke, President of European Chamber and Professor Paul Armstrong-Taylor, John Hopkins School of Advanced International Studies, Nanjing University to discuss the pressing economic and financial issues in China when the country has embarked on its ambitious and perhaps protracted reforming process.
China’s investment-led development has resulted in a multitude of problems, including industrial overcapacity, high debt level, and environmental degradation, which have imposed greater challenges to the country's economic transition.
We are honoured to have Mr. Wuttke to give a presentation on the Chamber's newly released study on overcapacity in China’s industrial economy. The report provides a detailed examination of the causes and consequences of serious overcapacity in eight important industries: crude steel, electrolytic aluminium, cement, refining, chemicals, flat glass, shipbuilding, and paper and paperboard. Based on our analysis, the European Chamber evaluates why, to date, the Chinese Government’s efforts to address overcapacity have failed and provides 30 recommendations—both direct and indirect measures—that should be taken to address this serious problem.
Equally, we have the pleasure to have Professor Paul Armstrong-Taylor to share his views on China's debt issue, which has grown sharply since the government encouraged lending to offset the effect of declining exports after the financial crisis. While debt can lead to sustainable growth if used to fund high-return investments, it seems that much of this debt went into low-return investments in infrastructure, real estate and heavy industry – industries that now face overcapacity and low profitability. Given this, much of the debt will not be repaid which means there will be losses. The key question facing the government is how these losses are assigned: who will pay? In the past, different countries have answered this question in different ways and their decisions have had long-term effects on their economies. In this talk, Professor Armstrong-Taylor would like to discuss the options facing the government, the consequences of different choices, and suggest a possible outcome.
Agenda:
14:30-15:00 Registration
15:00-15:05 Welcome remarks by Mr. Bernhard Weber, Board Member, European Chamber Nanjing Chapter
15:05-15:40 Overcapacity in China, by Mr. Joerg Wuttke, President of European Chamber
15:40-16:10 Options for Dealing with China's Bad Debt, by Professor Paul Armstrong-Taylor, Nanjing University
16:10-17:00 Q&A
Terms & Conditions:
Events have limited seating so to ensure your attendance we encourage advance online registration and payment for ALL events. We cannot guarantee entry to anyone not registered in advance.
All our events are held in English and are off-the-record unless otherwise stated.
Cancellation Policy:
If you cannot attend an event for which you have registered, please cancel your registration no later than one business day prior to the event. If you fail to notify us of your cancellation in a timely fashion, you will be charged for event costs.
To cancel you can: 1) email Ms. Annie Zhou at nanjing@europeanchamber.com.cn, or 2) cancel online if you registered for the event through the website.