Chinese investments prove risky

[dArKeR]

By the Liberty Times editorial

Tuesday, May 11, 2004,Page 8

In recent days, many people in China and abroad have voiced concerns that the large number of blind investments and repetitive development projects within China will necessarily create serious production problems and wasteful facilities.

They also believe that this problem will result in economic and investment growth rates declining massively, causing the momentum of economic growth to vaporize entirely.

Facing such a crisis, the Chinese government has taken the initiative in declaring a comprehensive adjustment of the situation, so as to hit the brakes to slow down investment.

However, it is no easy task to decrease excessive investment in a calm and orderly manner. This policy could very well cause a drastic decline across the entire economy, referred to as a "hard landing."

http://www.taipeitimes.com/News/edit/archives/2004/05/11/2003155023