BEIJING — Dozens of Chinese factories produce goods that no one wants at a cost over budget and cannot transport them when made, a bank investigation published Saturday revealed.
A People's Construction Bank probe printed by the newspaper Economic Information found that, of 235 large- and medium-scale plants built between 1984 and 1986, three-quarters were not operating at full capacity. One-quarter were inefficient and nearly 20% were losing money.
Meanwhile, the China Daily newspaper said Saturday that factories nationwide would, by 1990, produce more than 10 million vacuum cleaners for a market needing only 3 million. Factories have rushed into this line because of low production costs and quick profits, it said.
The articles are the latest in a series of indictments of inefficiency, waste and mismanagement in China's investment sector, a priority area for reform in 1988.