China overcapacity damage ‘far-reaching’

BEIJING: China’s overcapacity in heavy industries is wreaking “far-reaching” damage on the global economy, with steel production “completely untethered” from market demand, the European Union Chamber of Commerce in China said Monday.

The Asian giant’s steel industry manufactures more than the next four largest producers combined—Japan, India, the US and Russia—the chamber said in a report, warning that more than 60 percent of China’s aluminum industry has negative cash flow.