However, critics wonder whether that will translate into consumer purchasing. On July 12, People's Bank of China boss Dai Xianglong declined to renew earlier commitments by Beijing to keep the renminbi securely pegged to the U.S. dollar through the end of the year. The news caused Hong Kong stocks to fall. No devaluation is imminent. Andy Xie, economist for Morgan Stanley Dean Witter in Hong Kong, doesn't think that devaluation would do much to counter deflation anyway.
Hotels have too many empty rooms, many new buildings are empty, factories have large inventories.
Everything is in surplus. In the face of such problems, perhaps small solutions are best. In coming years, the plan is to increase the number further. Other university reforms underway are designed to ease the overcrowding that would normally come with such an increase. For example, extra dormitories could be built or students could be encouraged for the first time to live off campus.