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Latest News: China to lay off five to six million state workers http://www.reuters.com/article/us-china-economy-layoffs-exclusive-idUSKCN0W33DS http://www.reut

Latest News: China to lay off five to six million state workers http://www.reuters.com/article/us-china-economy-layoffs-exclusive-idUSKCN0W33DS http://www.reuters.com/article/us-china-economy-layoffs-excl...

rm_-rf_slash 11y ago
The report comes from anonymous Chinese government officials and cannot be accepted at face value as fact. However it is unlikely that China can rebalance from massive overproduction without massive layoffs. The quoted government official, Yin Weimin put the number closer to 1-2 million.
- RobertoG 11y ago
  " it is unlikely that China can rebalance from massive overproduction without massive layoffs." Why is that? it is a genuine question. Do they have an inflation problem?
  - rm_-rf_slash 11y ago
    Problems greater than inflation. Overproduction incentivizes dumping, which results in backlash from trading partners. It is also used to finance regional and local governments, which incentivizes overproduction and waste of resources. Sure, the thousands of construction workers making ghost cities get paid, but someone has to pay them. Not to mention the rampant corruption that occurs like magic when you mix money and power with a dash of unaccountability. http://www.economist.com/news/business/21693573-chinas-excess-industrial-capacity-harms-its-economy-and-riles-its-trading-partners-march http://www.economist.com/news/business/21693573-chinas-exces...
- sharetea 11y ago
  So the western world should just take the Chinese government media at face value? since the foreign media now needs a 'permit' to publish online in China. This is a government that cheats, lies, and steals. Oh, and kidnaps foreign citizens and forces them to tell lies on state TV http://www.forbes.com/sites/jnylander/2016/01/07/swedens-former-pm-is-china-starting-to-kidnap-individuals-in-hong-kong/#32ebe05aea44 http://www.forbes.com/sites/jnylander/2016/01/07/swedens-for...
  - rm_-rf_slash 11y ago
    We both agree. Anonymous Chinese government official statements are two layers of bullshit. Quoted officials are one.

rm_-rf_slash 11y ago

The report comes from anonymous Chinese government officials and cannot be accepted at face value as fact. However it is unlikely that China can rebalance from massive overproduction without massive layoffs. The quoted government official, Yin Weimin put the number closer to 1-2 million.

RobertoG 11y ago
" it is unlikely that China can rebalance from massive overproduction without massive layoffs." Why is that? it is a genuine question. Do they have an inflation problem?
- rm_-rf_slash 11y ago
  Problems greater than inflation. Overproduction incentivizes dumping, which results in backlash from trading partners. It is also used to finance regional and local governments, which incentivizes overproduction and waste of resources. Sure, the thousands of construction workers making ghost cities get paid, but someone has to pay them. Not to mention the rampant corruption that occurs like magic when you mix money and power with a dash of unaccountability. http://www.economist.com/news/business/21693573-chinas-excess-industrial-capacity-harms-its-economy-and-riles-its-trading-partners-march http://www.economist.com/news/business/21693573-chinas-exces...
sharetea 11y ago
So the western world should just take the Chinese government media at face value? since the foreign media now needs a 'permit' to publish online in China. This is a government that cheats, lies, and steals. Oh, and kidnaps foreign citizens and forces them to tell lies on state TV http://www.forbes.com/sites/jnylander/2016/01/07/swedens-former-pm-is-china-starting-to-kidnap-individuals-in-hong-kong/#32ebe05aea44 http://www.forbes.com/sites/jnylander/2016/01/07/swedens-for...
- rm_-rf_slash 11y ago
  We both agree. Anonymous Chinese government official statements are two layers of bullshit. Quoted officials are one.