China in preparation of taking measures against rising steel investments
According to most recent market reports, Chinese Vice-Premier Zeng Peiyan has invited iron and steel investors to reduce
investments. The call also included
investments in aluminium and cement industries.
China has become the biggest producer of the aforementioned products in recent years, however the excessive
investments surpassed the demand in the market and led to a price increase in raw materials. Unless certain precautions are taken, it is concerned that
China may face an economic overheating.
Not only the government but also the Ministry of Land and Resources, the People's Bank of
China and the State Environmental Protection Administration have also taken certain precautions to hinder investment in the above cited sectors.
In line with these developments,
China is now in preparation of imposing certain legal measures to control and regulate the
investments. However, what kind of measures will be taken is not certain yet.
In 2003, economy of
China indicated a growth of 9.1%, however this rate is expected to decrease in 2004.