I would like to submit for analysis this passage by Joesph Kahn from today's WSJ "China's Overcapacity Crimps Neighbors:Glut Swamps Southeast Asia's Exports, Roiling Currencies" (A10): "Fed by overinvestment, China has built up a glut of manufacturing capacity so huge that the country could produce nearly twice what it does...As a result, China is flooding the US and traditional Southeast Asian export targets with cheap goods--crimping its neighbors export-led economies. China's own economic picture isn't rosy. Many state-owned factories are idle. Domestic growth is relatively weak. High levels of foreign investment and an earlier era of cheap credit have left China with a painful hangover: excess capacity in autos, tvs, textiles, petrochemicals and a score of other major industries...the average Chinese factory uses less than 60% of its capacity, a level that would be considered depressionary in other countries." Any comments would be appreciated. Rakesh
