SOURCE: ARC China

September 07, 2010 15:47 ET

Adam Roseman's Commentary on China's Measures to Adjust Economic Structure Featured in September 7th, 2010 Edition of ARC China Weekly Newsletter

SHANGHAI, CHINA--(Marketwire - September 7, 2010) -  ARC China released the latest edition of its newsletter ARC China Weekly today. The publication includes a commentary from ARC China Founder Adam Roseman as well as articles covering topics of general interest with a focus on consumer and retail, alternative energy, recent investment transactions in China's current news, and transactions in the Middle East, Europe, and the United States. 

Roseman's foreword focuses on the recent announcement by China's State Council calling for further mergers and consolidation in commoditized industries to eliminate outdated capacity and improve efficiency.

This echoed the announcement released by Ministry of Industry & Information Technology (MIIT) in early August that outdated capacity in more than 2,000 energy-intensive and polluting factories will be eliminated. The MIIT set the end of September as the deadline for these 2,087 factories from 18 industries such as cement, paper-making, iron alloys, dyeing, steel production, construction materials, light industry and textile industry sectors.

Companies that fail to comply with the instruction will be barred from obtaining loans. They will not get government approval for new investments, will not get access to additional land and will face the withdrawal of their production license and pollution permit.

To ultimately achieve its economic goals for sustainable development, China is actively working to further promote domestic consumption. China's healthy employment profile and recent social safety net reforms play important roles in boosting domestic demand. There is also great potential to expand domestic demand through China's ongoing urbanization process which serves to increase disposable incomes.

China's economic restructuring will bring the country greater independence within the global economy as it will allow the country to increase its bargaining power for imported commodities and allow for further decoupling from the weakened traditional export markets in North America and Europe.

The newsletter can be found online at http://www.arcchina.cn/this-week-in-china/volume-77/.

About ARC China

ARC China is an investment firm focused on investments in entrepreneur-owned small and medium sized enterprises located in Tier II and Tier III Chinese cities. We seek to create value for our investors and companies we invest in by applying our professional experience and relationships to help companies upgrade their management teams, technology, systems, and business processes. Our team of experienced investment professionals and in-house due diligence analysts deploy a proven and unique on-the-ground activist investment strategy of making value-oriented highly involved, exit-driven equity investments in a diversified portfolio of domestic consumption-focused high-growth Chinese businesses. For more information, please visit http://www.arcchina.cn.

Contact Information

  • Contact:

    Adam Roseman
    ARC China
    182 Chang Shu Road
    Xu Hui District
    Shanghai 200031, P.R. China
    Email: Email Contact