'Speed up reform', Moody's to China
Overcapacity remains a key obstacle, particularly in cyclical industries, Moody's said in its report, pointing out that capacity utilisation in China had fallen to 60 percent in 2011 from 90 percent in 2000.
We think the economic slowdown will be a challenge for SOE adaptability, Hu said. Growing per capita income will increase cost pressure on companies, he added. Recent market reforms in energy prices will be a boon to suppliers of energy but add cost pressure to consumers.
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