China’s Old Economy Is Staging A Surprising Rebound

Last year, Chinese policymakers introduced a wave of measures to try and curb overcapacity in the country’s old economy. As prices for commodities such as coal and steel collapsed, on falling demand but debt sponsored capacity expansion, policymakers decided to place limits on producers. Some of these measures are now starting to be rolled back, but further cuts are planned. Last year, Beijing’s top-down restriction on state mines’ operating days — the number that miners could work in a year -- was cut from 330 to 276 and this, along with private sector closures, forced the price of coal above $100 a tonne. The National Development and Reform Commission still to cut 150 million tonnes of coal mining capacity this...