TCL Chief Urges State Investors to Stay Out of Competitive Industries
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A Chinese technology executive has called for local state-owned investors to pull back from competitive industries, blaming local government-backed investment for fueling the severe overcapacity that has plagued sectors like solar energy.
Li Dongsheng, chairman of TCL Technology Group Corp., made the remarks ahead of the annual “Two Sessions” in Beijing. His proposal takes aim at the “involution-style” vicious competition that has distorted market prices, suppressed corporate profitability and triggered trade tensions. Li, who is also a deputy to the National People’s Congress, argued that to cure this economic malaise, the government must allow market forces to play the decisive role in resource allocation rather than relying on administrative intervention.
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- Li Dongsheng criticized local government-backed investments for causing severe overcapacity in sectors like solar energy, with capacity utilization at only 40%-50%.
- He urged restricting local state capital in competitive industries, aligning with Beijing’s guidelines for curbing excessive local economic promotion and protectionism.
- Li proposed policies to accept state capital losses, facilitate debt restructuring, and relax refinancing rules to help eliminate excess capacity.
- TCL Technology Group Corp.
- Li Dongsheng, chairman of TCL Technology Group Corp., criticized local government-backed investment for causing overcapacity in industries like solar energy. He argued for market forces to lead resource allocation, urging restrictions on local state-owned funds entering competitive fields.
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