Professor of Government Cheng Li was recently quoted in a New York Times article about recent steel production surges in China. According to Li, Beijing has faced great difficulty in restraining investment in steel mills because of the manner in which power is decentralizing in China and because President Hu Jintao maintains policies that encourage inland development.
According to the article, there is worldwide concern that if China's economic growth slows without a substantial decrease in steel production, markets "will be stuck with an enormous glut of steel that could wreck profits and touch off mass layoffs at steel mills around the world."
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