China is cutting inefficient, polluting steel capacity: Jim Rogers

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Mumbai, Jan 11 (IANS) American businessman and Rogers Holdings’ CEO Jim Rogers on Wednesday termed China’s decision to cut steel production capacity a wise decision as the country would be cutting “inefficient and polluting” capacity.

“China is cutting inefficient production. The country is production which has pollution and is merging production. They are acting like a good capitalist,” he told BTVi in an interview.

According to BTVi, China’s capacity reduction plan in steel in 2016 was 70 million tonnes. Of the overall stated target, the effective capacity was very little as bulk of that is idling capacity.

“In terms of the numbers of capacity cut, it is 5 percent of world capacity,”

“World is facing some problems. (US President-elect Donald) Trump has promised, he will have trade war with China. If that is the case, it is not good for China and America,” he said.

On India, Rogers remained bullish in terms of implementation of Goods and Services Tax (GST).

“I am hopeful Prime Minister Narendra Modi will be able to implement GST. I wanted to invest in India after GST. But after the crazy thing with currency, I am not investing in India yet,” he said.

–IANS
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Source: Indo-Asian News Service – http://ians.in/index.php?param=news/C-1-862854