Why China Must Push Reset

Qilai Shen / In Pictures / Corbis

Light show Assembling photovoltaic panels in Wuxi. China's solar-power industry, the world's biggest, is generating excess capacity

Updated: Jun. 12, 2012

In the Chinese industrial city of Yiwu, it's Christmas year-round. But entrepreneur Kevin Luo isn't in a festive mood. Roughly half the world's Christmas decorations — from plastic trees to red Santa caps — are produced by some 500 manufacturers in Yiwu. At a noisy facility outside the city center, Luo, 28, churns out 130 million shiny ornaments a year. A changing Chinese economy, however, is making it more and more difficult for his firm, the Yiwu Shuangyuan Christmas Arts & Crafts Factory, to stay...

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