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Steel bars sit in an idle steel stock yard in Shanghai, China on 06 January 2010. China's central Banking governor Zhou Xiaochuan warned yesterday that industrial overcapacity could "pose a risk to the quality of bank loans." Even so, China will continue its "moderately loose" monetary policy. Some critics say that China's stimulus package, which has been much credited for leading the world out of a recession, had been used mainly to create more capacity in industries such as steel and manufacturing, which in turn will further put pressure on the world economy. Already this year the U.S. has slapped additional duties of 43 to 289 percent on imports of more than $300 million worth of a steel product from China.

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Qilai Shen
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Qilai Shen Asia China Peoples Republic of Shanghai Steel Material Metal Commodities Economy
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Steel bars sit in an idle steel stock yard in Shanghai, China on 06 January 2010. China's central Banking governor Zhou Xiaochuan warned yesterday that industrial overcapacity could "pose a risk to the quality of bank loans." Even so, China will continue its "moderately loose" monetary policy. Some critics say that China's stimulus package, which has been much credited for leading the world out of a recession, had been used mainly to create more capacity in industries such as steel and manufacturing, which in turn will further put pressure on the world economy. Already this year the U.S. has slapped additional duties of 43 to 289 percent on imports of more than $300 million worth of a steel product from China.
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