An internal Chinese Communist Party (CCP) document that Jilin Province issued reveals that the purpose of China’s “One Belt One Road” strategy is to enable China to export excess capacity.
The document disclosed that one of the main tasks of China’s industrial transformation and upgrading is to “solve the excess capacity” problem through the “One Belt One Road” strategy.
According to the Jilin Provincial Government, “with the ‘One Belt One Road’ strategy leading us, our province should take the initiative to find the consumer market, digest excess capacity, adjust economic structure, promote industrial transformation, and promote product upgrading.” The document mentioned China’s first automobile manufacturing plant “FAW” located in Jilin Province, saying that “Changchun FAW and its supporting enterprises will usher in a rare opportunity.”
FAW has had a serious overcapacity problem. Its brands, Pentium, Red Flag, FAW Jilin, and FAW Tianjin have a combined total production capacity of 780,000 vehicles. In 2017, the sales volume was only 210,000 vehicles, and the capacity utilization rate was less than 30 percent.
According to statistics that the China Association of Automobile Manufacturers released, due to the continued decrease in sales and the continued increase in production capacity, the capacity utilization rate of passenger vehicles in China has dropped from 66.55 percent in 2017 to 53.74 percent in 2019.
Internal documents from Anhui Province also show that local governments are actively transferring excess production capacity through “One Belt One Road.”
In the documents, the CCP Chuzhou municipal government in Anhui Province encourages companies with excess capacity to invest in countries along the “One Belt One Road” and focus on supporting companies involving cement, glass and construction materials to establish production facilities along the route.
Source: Epoch Times, October 7, 2020