Suppressing “Blind” Investment

  • Mark A. De Weaver


Bankruptcy plays an important role in free market economies. It is one of the processes of “creative destruction,” to use the term that Schumpeter made famous. Shifts in consumption patterns as well as increasing efficiencies in production processes tend to discipline risk-takers betting on past economic trends. In the more extreme cases, bankruptcy becomes a significant enforcer of the mechanisms of the free market.


Real Estate Central Government Industrial Policy Affordable Housing Excess Capacity 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    This claim was one of Mao’s attempts to put a positive “spin” on the failure of the Great Leap Forward. See: Mao Zedong, “Examples of Dialectics,” 1959, Scholar
  2. 2.
    Fan Gang, and Zhang Xiaojing, Zenme You Guo Re Le? Xin Yilun Jingji Bodong yu Hongguan Tiaokong Fenxi [Why Is There Overheating Yet Again? The New Round of Economic Fluctuation and an Analysis of Macroeconomic Adjustment] (Nanchang: Jiangxi People’s Publishing House, 2004), 50.Google Scholar
  3. 3.
    Manolo Serapio, “Analysis: China Metals Curbs May End Up Boosting Smelting.” Reuters, July 12, 2011, Scholar
  4. 4.
    Wang Fengjun, “11 Channeng Guosheng Hangye Feng Yu Yu Lai” [Trouble Ahead for 11 Excess Capacity Industries]. 21st Century Business Herald, December 31, 2005, Scholar
  5. 5.
    Ministry of Industry and Information Technology, “Gongye he Xinxihua Bu Xiang Shehui Gonggau 18 ge Gongye Hangye Taotai Luohou Channeng Qiye Mingdan” [Ministry of Industry and Information Technology Releases List of Enterprises in 18 Industrial Sectors with Obsolete Capacity to be Eliminated], August 8, 2010, Scholar
  6. 6.
    National Development and Reform Commission, “Guowuyuan Guanyu Fabu Shishi ‘Cujin Chanye Jiegou Tiaozheng Zhanxing Guiding’ de Jueding” [State Council Decision on the Promulgation and Implementation of the ‘Provisional Measures for Promoting the Adjustment of the Industrial Structure’], December 2, 2005, Scholar
  7. 7.
    National Development and Reform Commission, “Chanye Jiegou Tiaozheng Zhidao Mulu (2005 Ben)” [Index for Guiding the Adjustment of the Industrial Structure (2005 Edition)]. Document No. 40, 2005, December 2, 2005, Scholar
  8. 9.
    William H. Hunter, “Retort Zinc Production,” November 2011, Scholar
  9. 10.
    Alfredo J. Dammert and Jasbir G. S. Chhabra, “The Lead and Zinc Industries: Long-Term Prospects.” World Bank Staff Commodity Working Paper No. 22. (Washington, DC: World Bank, 1990), 46.Google Scholar
  10. 11.
    Frank H. Thorp, Outlines of Industrial Chemistry (New York: Macmillan, 1916), 619.Google Scholar
  11. 12.
    Zhang Tao and Cheng Shuangqing, “Taotai Luohou Gangtie Channeng Jing Wan ‘Zhangyanfa’” [‘Cover Ups’ and Game Playing in the Elimination of Obsolete Steel Capacity]. Jingji Cankao Bao [Economics Reference News], December 19, 2007, Scholar
  12. 13.
    Zhongguo Huanjing Bao, “Jilei Bu Zu Fazhan Mangmu Taotai Bu Chedi: Zhongguo Shuini Channeng Guosheng” [Insufficient Accumulation, Blind Development, Incomplete Elimination: Excess Capacity for Chinese Cement], October 12, 2009, Scholar
  13. 14.
    Chen Zhencheng, “Fangwu Gao Kongzhi Qianfu Fangdichan Weiji” [High Housing Vacancies Portend Property Crisis]. Qiushi Lilun Wang, August 5, 2010, Scholar
  14. 15.
    Yangcheng Wanbao [Yangcheng Evening News], “90/70 Zhengce: Sheng De Aimei, Si De Ganga” [The 90/70 Policy: Dubious Birth, Embarrassing Death], February 23, 2009, Scholar
  15. 16.
    Yu Bingbing, “Shanghai Nanjing Chengdu Deng Duoge Chengshi 70/90 Zhengce Didiao Tuichu” [70/90 Policy Unofficially Abandoned in Shanghai, Nanjing, Chengdu, and Many Other Cities]. Shanghai Securities Times, July 6, 2009, Scholar
  16. 17.
    Gao Lu, “Achievements and Challenges: 30 Years of Housing Reform in the People’s Republic of China.” ADB Economics Working Paper Series No. 198. Manila: Asian Development Bank, April 2010: 10, Scholar
  17. 19.
    Zhong Jiwen, “Shiliu Da Yilai Fanfu Changlian Chengxiao Mingxian: 3 Wan Yu Guanyuan Bei Zhuijiu” [Post Sixteenth Party Congress Anti-corruption Drive Has Evident Accomplishments: Over 30 Thousand Officials Investigated]. Fazhi Ribao [Legal Daily], September 29, 2005, Scholar
  18. 20.
    Zi Ping (ed.), Gaoceng Fuguan Caise Dangan [Sex and Wealth Files of Corrupt High Officials] (Hong Kong: Huanqiu Shiye Publishing House, 2005), 324–325.Google Scholar
  19. 21.
    Mark O’Neil, “Zhou Zhengyi Has Lost His Best Friend.” Asia Sentinel, February 20, 2007, view&id= 384&Itemid= 31Google Scholar

Copyright information

© Mark A. DeWeaver 2012

Authors and Affiliations

  • Mark A. De Weaver

There are no affiliations available

Personalised recommendations