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As capacity cuts increase, the..........>

CHINA PRESS
CHINA PRESS: As capacity cuts increase, the pricing of upstream industry
products needs to be examined, the Economic Information Daily, a newspaper under
the official Xinhua news agency, said Thursday in a front-page commentary. On
the one hand, capacity cuts have enhanced prices in higher-end products, which
has caused profits in some industries to rise to their best levels in history.
However, the rapid expansion of upstream products has eroded profits for
industries with lower-end products. China's capacity reduction program has had
some success and some industries' fortunes have improved. But policymakers
should place controls on pricing ranges and avoid any rapid decrease in prices
to balance profits in upstream and downstream industries, and also to avoid a
excessive increase in prices that could hinder economic growth. (Economic
Information Daily)

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