Originally Posted by
Rodney Mills
Report from China: "The Economist" March 19th, 2016
In February the labor minister, Yin Weimin, said that 1.3 million coal workers and 500,000 steel workers could lose their jobs over the next five years...Other estimates say 3million-5million people may be thrown out of work in these industries as well as aluminium production and glassmaking...Labour unrest is rising everywhere. Many firms are reacting to financial distress by paying wages late or not at all...In early February there were over 1000 strikes and protests, 90% of them relate to non-payment of wages.
China's economy has been in a slowdown for almost a year, this has caused a massive over production of steel as people have not been buying cars, but the state run steel companies have used the ostrich school of management system, thus a back log of steel, coal to smelt it etc. etc.. This has led to dumping steel on the worlds market. There is no way I can see that the government could bail out Tata Steel or nationalize it, there is a massive overproduction of Steel.
"The Economist" is a leading weekly magazine and well respected throughout the world. It is British, and has been continuously published since September, 1830. Therefore is no "rag."
Reliable financial papers report similar findings.