Latest news with #overcapacity
CTV News
19 hours ago
- Health
- CTV News
Horizon Health seeks permission to discharge some patients from 4 N.B. hospitals
Upper River Valley Hospital in Waterville, N.B., is pictured in this undated image. (Source: Horizon Health Network) The Horizon Health Network is asking the New Brunswick government for 'critical state admission prioritization status' for patients who no longer need acute care from four regional hospitals. Horizon says the Dr. Everett Chalmers Regional Hospital in Fredericton, the Saint John Regional Hospital, the Miramichi Regional Hospital and the Upper River Valley Hospital in Waterville are all 'experiencing chronic overcapacity' due to high levels of Alternate Level of Care (ALC) patients waiting for services. The health network is asking for the ability to give those patients priority to all available community-based beds in longterm care facilities. 'This is not a request we make lightly, however, despite the great effort by staff and physicians to care for all inpatients, the current situation across our hospital system is unsustainable,' a Horizon news release says. Horizon says they currently have more than 650 patients who no longer need acute care but cannot be safely discharged as they are waiting for placement in facilities such as nursing homes. The health network says roughly 40 per cent of their acute care beds are occupied by patients who do not have a medical reason to still be in hospital. 'This is the highest number of ALC patients our hospital system has ever seen,' the release says. 'This level of pressure has a profound impact on our entire health care system. 'It means fewer beds for patients who need surgery. It causes emergency department wait times to grow longer. It forces care to be delivered in hallways, dining areas, lounges, and other makeshift spaces.' Upper River Valley Hospital Upper River Valley Hospital in Waterville, N.B., is pictured in this undated image. (Source: Horizon Health Network) For more New Brunswick news, visit our dedicated provincial page.
Free Malaysia Today
6 days ago
- Business
- Free Malaysia Today
China hopes EU will ‘make fewer accusations' on market access
European Commission president Ursula von der Leyen said China's 'unyielding' support for Russia had created heightened instability and insecurity in Europe. (AFP pic) BEIJING : China hopes the EU would make fewer accusations, the Chinese commerce ministry said today in a retort to EU criticism that European firms had limited access to the Chinese market. Setting the tone for an expected China-EU summit in Beijing in late July, European Commission president Ursula von der Leyen earlier this week said China had flooded global markets with its overcapacity, limited access to its market, and de-facto enabled Russia's war economy. China hopes the EU would 'make fewer accusations and communicate more, be less protectionist, and be more open,' He Yongqian, a spokeswoman for the Chinese commerce ministry, said at a regular press conference. China hopes the EU would view their economic and trade relationship 'without emotion and prejudice,' He said. In an address to the European parliament on Tuesday, Von der Leyen praised China for expanding its economy by more than 10 times over 50 years, lifting 800 million of its people out of poverty, and transforming itself into an industrial giant and clean tech leaders. 'But our relations with China must be rooted in a clear-eyed assessment of this new reality,' she said. Von der Leyen said China had 'unique instruments at its disposal' that allowed it to flood global markets with subsidised overcapacity not just to boost its own industries, but to choke international competition. She also said China's 'unyielding' support for Russia had created heightened instability and insecurity here in Europe, becoming a de-facto enabler of Russia's economy as the war between Moscow and Kyiv persisted. Her criticism of China followed a visit to Brussels by China's foreign minister Wang Yi, who told the EU's top diplomat Kaja Kallas that he hoped the EU would develop a more objective and rational understanding of China and adopt a more positive and practical policy toward China.
Yahoo
6 days ago
- Business
- Yahoo
Xi Signals China May Finally Move to End Deflationary Price Wars
(Bloomberg) — After years of mounting concern over deflation and the bruising price wars that have plagued much of China's economy, President Xi Jinping's government is showing signs of finally taking action. Singer Akon's Failed Futuristic City in Senegal Ends Up a $1 Billion Resort Are Tourists Ruining Europe? How Locals Are Pushing Back Can Americans Just Stop Building New Highways? Denver City Hall Takes a Page From NASA Philadelphia Trash Piles Up as Garbage Workers' Strike Drags On Beijing's messaging has noticeably shifted in recent weeks, with Xi and other top officials offering their bluntest assessment yet of the cutthroat competition that's been dragging down prices and profits across industries, from steel and solar panels to electric vehicles. This pivot comes after nearly three years of factory-gate deflation and growing pressure from US tariffs and trade tensions. Finding a solution would be welcome news for much of the world. A successful effort to rein in industrial overcapacity, long a source of friction with trading partners, stands to ease trade tensions and restore confidence in the globe's second-biggest economy. But the path forward is far from clear. Xi's government must curb excess supply without stalling growth or putting jobs at risk, especially as external demand slows and a lasting trade deal with the US remains elusive. 'If executed right, it could be helpful to global trade, in terms of easing tensions coming from China's overcapacity, output spilling into the global markets,' Wendy Liu, chief Asia and China equity strategist at JPMorgan Chase & Co. (JPM), told Bloomberg Television on Wednesday. 'But short term, it's not GDP-friendly or employment-friendly, so it's a balancing act.' China reported this week that factory deflation persisted into a 33rd month in June, with the producer price index falling 3.6% from a year earlier. The decline was the most since July 2023 and sharper than any economists had forecast, underscoring the urgency of the problem. While no formal plan has been announced, optimism is building that a more coordinated policy response is on the way. A meeting this month of the top Communist Party body in charge of economic policy acknowledged the underlying causes of the problem, ranging from local governments' drive to promote investment to a tax system that favors output over efficiency. Though it doesn't directly reference deflation, until recently a taboo topic in Beijing, the assessment 'represents the strongest signal yet that Chinese policymakers are intending to tackle disorderly competition and the price wars in sectors like autos,' said Duncan Wrigley, chief China economist at Pantheon Macroeconomics. It omitted a mention of industry associations — whose efforts at self-regulation have largely failed at limiting production — in what Pantheon said could indicate a new approach 'with greater top-down determination.' Industry groups and official media have echoed the shift in tone, calling for efforts to end the price wars. Some companies in sectors ranging from steel to glassmaking are reportedly planning to cut output. The cost of reinforcing bars, a key steel product used in construction, has fallen to the lowest since 2017, while glass prices are hovering near a nine-year low. The People's Bank of China ( expressed similar concerns, naming 'prices running at a low level continuously' as a key challenge of the economy for the first time in recent years. In May, the central bank offered another detailed analysis of downward pressure on prices, which highlighted the limits of relying on monetary easing to reflate the economy under a growth model that's tilted toward investment and supply. China's Ministry of Industry and Information Technology, or MIIT, met with solar companies, while a group of almost three dozen construction firms signed on to an 'anti-involution' initiative, a term used in China to describe intense competition sparked by excess capacity. The government also launched a platform to handle supplier complaints over late payments, part of a broader push to clean up unfair business practices. For now, the lack of concrete policy measures is tempering expectations. If officials follow through, as they did after a similar meeting early 2024 that led to a consumer goods trade-in program — many economists expect them to reprise a playbook used between 2015 and 2017. That supply-side reform largely consisted of aggressive cuts of heavy industry capacity including steel and coal, as well as a shantytown redevelopment program that encouraged residents to buy new homes. The effort helped revive commodity prices and home sales. Eventually, it contributed to a recovery in industrial profits and stabilized economic growth. But the challenge now is more complex. Domestic demand remains weak, export prospects are deteriorating, and many of the sectors engaged in the most intense price wars — like EVs — are dominated by private firms, limiting the government's ability to impose capacity cuts. Local officials, wary of unemployment, may resist moves that threaten jobs, even if it means keeping unprofitable firms alive. And while China is eager to defuse the pressure on prices, it's equally determined to increase its manufacturing might in the face of President Donald Trump's push to bring more factories back to the US. Beijing is considering a new version of its 'Made in 2025' campaign to boost production of high-end technological goods, Bloomberg News previously reported. For Citigroup Inc. (C), upcoming measures could include capacity cuts in sectors dominated by big state-owned enterprises, such as coal, steel and cement, as well as stricter enforcement of environmental, labor and quality standards in private-dominated industries. Authorities could also reduce subsidies for industries, including those motivated by local favoritism, or cut export tax rebate, according to a Citi report last week. The latter already happened for products including aluminum, copper and batteries in late 2024. Officials may also move to rein in bad business practices, such as exploiting suppliers to win lower prices or delaying payments. In March, new rules required firms to pay suppliers within 60 days, and several automakers have since pledged to comply. Analysts at HSBC Holdings Plc (HSBC) argue that demand-side measures will be equally important, with steps such as improving the social safety net as well as stabilizing employment and the property market. But longer-term change will require deeper reforms to the China's growth model, one which relies on investment and production. That could mean adjusting how local officials are evaluated, shifting from pure economic expansion targets to metrics like consumption and income growth, according to Morgan Stanley (MS). For now, the shift in tone is notable, but the follow-through remains uncertain. 'The tone is sharper, the intent more coherent,' Morgan Stanley economists led by Robin Xing wrote in a report. 'But no timeline has been laid out, and no mechanism for enforcement has been introduced,' they said, adding that 'the gap between diagnosis and delivery remains wide.' —With assistance from Ocean Hou, Yvonne Man and Annabelle Droulers. Will Trade War Make South India the Next Manufacturing Hub? 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate 'Telecom Is the New Tequila': Behind the Celebrity Wireless Boom SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too ©2025 Bloomberg L.P.
Yahoo
6 days ago
- Business
- Yahoo
Xi Signals China May Finally Move to End Deflationary Price Wars
(Bloomberg) -- After years of mounting concern over deflation and the bruising price wars that have plagued much of China's economy, President Xi Jinping's government is showing signs of finally taking action. Singer Akon's Failed Futuristic City in Senegal Ends Up a $1 Billion Resort Are Tourists Ruining Europe? How Locals Are Pushing Back Can Americans Just Stop Building New Highways? Denver City Hall Takes a Page From NASA Philadelphia Trash Piles Up as Garbage Workers' Strike Drags On Beijing's messaging has noticeably shifted in recent weeks, with Xi and other top officials offering their bluntest assessment yet of the cutthroat competition that's been dragging down prices and profits across industries, from steel and solar panels to electric vehicles. This pivot comes after nearly three years of factory-gate deflation and growing pressure from US tariffs and trade tensions. Finding a solution would be welcome news for much of the world. A successful effort to rein in industrial overcapacity, long a source of friction with trading partners, stands to ease trade tensions and restore confidence in the globe's second-biggest economy. But the path forward is far from clear. Xi's government must curb excess supply without stalling growth or putting jobs at risk, especially as external demand slows and a lasting trade deal with the US remains elusive. 'If executed right, it could be helpful to global trade, in terms of easing tensions coming from China's overcapacity, output spilling into the global markets,' Wendy Liu, chief Asia and China equity strategist at JPMorgan Chase & Co., told Bloomberg Television on Wednesday. 'But short term, it's not GDP-friendly or employment-friendly, so it's a balancing act.' China reported this week that factory deflation persisted into a 33rd month in June, with the producer price index falling 3.6% from a year earlier. The decline was the most since July 2023 and sharper than any economists had forecast, underscoring the urgency of the problem. While no formal plan has been announced, optimism is building that a more coordinated policy response is on the way. A meeting this month of the top Communist Party body in charge of economic policy acknowledged the underlying causes of the problem, ranging from local governments' drive to promote investment to a tax system that favors output over efficiency. Though it doesn't directly reference deflation, until recently a taboo topic in Beijing, the assessment 'represents the strongest signal yet that Chinese policymakers are intending to tackle disorderly competition and the price wars in sectors like autos,' said Duncan Wrigley, chief China economist at Pantheon Macroeconomics. It omitted a mention of industry associations — whose efforts at self-regulation have largely failed at limiting production — in what Pantheon said could indicate a new approach 'with greater top-down determination.' Industry groups and official media have echoed the shift in tone, calling for efforts to end the price wars. Some companies in sectors ranging from steel to glassmaking are reportedly planning to cut output. The cost of reinforcing bars, a key steel product used in construction, has fallen to the lowest since 2017, while glass prices are hovering near a nine-year low. The People's Bank of China expressed similar concerns, naming 'prices running at a low level continuously' as a key challenge of the economy for the first time in recent years. In May, the central bank offered another detailed analysis of downward pressure on prices, which highlighted the limits of relying on monetary easing to reflate the economy under a growth model that's tilted toward investment and supply. China's Ministry of Industry and Information Technology, or MIIT, met with solar companies, while a group of almost three dozen construction firms signed on to an 'anti-involution' initiative, a term used in China to describe intense competition sparked by excess capacity. The government also launched a platform to handle supplier complaints over late payments, part of a broader push to clean up unfair business practices. For now, the lack of concrete policy measures is tempering expectations. If officials follow through, as they did after a similar meeting early 2024 that led to a consumer goods trade-in program — many economists expect them to reprise a playbook used between 2015 and 2017. That supply-side reform largely consisted of aggressive cuts of heavy industry capacity including steel and coal, as well as a shantytown redevelopment program that encouraged residents to buy new homes. The effort helped revive commodity prices and home sales. Eventually, it contributed to a recovery in industrial profits and stabilized economic growth. But the challenge now is more complex. Domestic demand remains weak, export prospects are deteriorating, and many of the sectors engaged in the most intense price wars — like EVs — are dominated by private firms, limiting the government's ability to impose capacity cuts. Local officials, wary of unemployment, may resist moves that threaten jobs, even if it means keeping unprofitable firms alive. And while China is eager to defuse the pressure on prices, it's equally determined to increase its manufacturing might in the face of President Donald Trump's push to bring more factories back to the US. Beijing is considering a new version of its 'Made in 2025' campaign to boost production of high-end technological goods, Bloomberg News previously reported. For Citigroup Inc., upcoming measures could include capacity cuts in sectors dominated by big state-owned enterprises, such as coal, steel and cement, as well as stricter enforcement of environmental, labor and quality standards in private-dominated industries. Authorities could also reduce subsidies for industries, including those motivated by local favoritism, or cut export tax rebate, according to a Citi report last week. The latter already happened for products including aluminum, copper and batteries in late 2024. Officials may also move to rein in bad business practices, such as exploiting suppliers to win lower prices or delaying payments. In March, new rules required firms to pay suppliers within 60 days, and several automakers have since pledged to comply. Analysts at HSBC Holdings Plc argue that demand-side measures will be equally important, with steps such as improving the social safety net as well as stabilizing employment and the property market. But longer-term change will require deeper reforms to the China's growth model, one which relies on investment and production. That could mean adjusting how local officials are evaluated, shifting from pure economic expansion targets to metrics like consumption and income growth, according to Morgan Stanley. For now, the shift in tone is notable, but the follow-through remains uncertain. 'The tone is sharper, the intent more coherent,' Morgan Stanley economists led by Robin Xing wrote in a report. 'But no timeline has been laid out, and no mechanism for enforcement has been introduced,' they said, adding that 'the gap between diagnosis and delivery remains wide.' --With assistance from Ocean Hou, Yvonne Man and Annabelle Droulers. Will Trade War Make South India the Next Manufacturing Hub? 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate 'Telecom Is the New Tequila': Behind the Celebrity Wireless Boom SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too ©2025 Bloomberg L.P.
Reuters
7 days ago
- Automotive
- Reuters
China automakers' price war, overcapacity hurt finances
July 3 (Reuters) - China's auto sector is reeling from overcapacity and an extended price war, raising alarm among regulators and industry executives who warn the turmoil is undermining the sector's long-term viability. China's top leaders have pledged to step up regulation of aggressive price-cutting and support the orderly phasing out of outdated production capacity, state media reported earlier this month. LSEG data for 33 listed automakers headquartered in China show a broad deterioration in key financial metrics over the past six years, highlighting the impact of a brutal price war that began in 2023. Data showed that the average time carmakers took to pay their suppliers and other short-term creditors widened to 108 days in 2024 from 99 days in 2019. On June 1, new regulation kicked in, requiring large companies to settle payments within 60 days of receiving goods, engineering services or materials. Joerg Wuttke, Washington-based partner at DGA-Albright Stonebridge Group, said that European and German suppliers generally paid suppliers within 40 to 50 days. "That (new regulation) is going to enforce a more level playing field and basically stop these automakers from turning their suppliers into bankers," he said. Among major brands, top electric vehicle seller BYD ( opens new tab took an average of 127 days to pay suppliers and other short-term creditors in 2024, up from 81 days in 2019, the LSEG data showed. When asked about the data, BYD said its average payment period to suppliers that covered both accounts payable and notes payable dropped to 127 days by 2024 from 139 days in 2019. Geely Automobile's ( opens new tab payment period also rose to 193 days in 2024 from 139 days in 2019, according to LSEG data. Geely declined to comment. Bucking the trend, Great Wall Motor Co ( opens new tab shortened its payment cycle to 94 days in 2024 from 115 days in 2019. The company did not respond to a Reuters request for comment. The sector's combined inventory levels more than doubled to 370 billion yuan ($51.55 billion) in 2024 from 2019, even as dealers complained of many firms dumping cars on them to meet high sales targets. Total debt among carmakers surged 56% to 959 billion yuan last year from 2019's level. The median debt-to-equity ratio climbed by 21 percentage points to 51.3%. The sector's median net profit margin fell to just 0.83% in 2024 from 2.7% in 2019. BYD, however, boosted its profit margin to 5.4% from 1.7% in 2019. The company, which makes cars and mobile phone components, attributed the improvement to a change in its business mix as the contribution of automotive-related revenue as a share of total revenue grew from 49.5% to 79.4% over the period. Nio Inc and Xpeng Inc , two of China's best-known EV brands, had among the longest payment periods among the 33 firms. The two companies stretched their payment periods to suppliers and other short-term creditors to 223 days and 237 days, respectively. Both companies continued to remain in the red, although both improved their negative margins sharply over the period. Nio said it would commit to paying suppliers within 60 days. Xpeng said its cash liquidity continued to improve and referred to comments its CEO He Xiaopeng made last Thursday at a media event that the company would also, like other firms, endeavour to meet a commitment to pay suppliers within 60 days as soon as possible. ($1 = 7.1769 Chinese yuan renminbi)
