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ns that jeopardize financial stability. While capacity cuts are n◆ecessary and have long-term benefits for the economy, the process has not been without challenges. ◆ Capital-intensive industries present potential investment, taxation and jobs for local governments◆, which in at least two cases brok9

e capacity-cutting rules set by the central government. Huada St◆eel in eastern China5

's Jiangsu Province and Anfeng Steel in northeru

n China's Hebei Province were id◆entified by authorities in December for violating capacity reduction efforts in the sector with "ex◆tremely bad influence." Thanks in part to the efforts, China's broader economic growth has shok

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wed ◆increasing signs of stabilizing since the latter hA

alf of last year, with indicators such as factory◆ prices and industrial profitsU

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