Managing Business Through China’s Consolidation Phase

There are many uncertainties in China’s outlook from the pace of growth through to geopolitics. Yet the biggest challenge for firms is likely to be that many parts of China’s economy are entering a consolidation phase, with capacity well above the level of demand for several years. That will force prices down and accelerate a competitive shakeout. Our opening commentary will sketch out demand levels, expected price movements, and the potential impact on activity. In our discussion, we’ll focus on the appropriate strategy for surviving consolidation.

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