TOKYO -- Three major Japanese petrochemical companies this week resorted to merging their plastic materials businesses in a bid to cope with growing competition from China, illustrating how overcapacity in the world's No. 2 economy is straining industries and fueling trade friction across the globe.
Commodities
Harsh reality of China petrochemical overcapacity drives Japanese merger
Chinese producers struggle despite exporting billions worth of materials
A Sinopec refinery in Shanghai. The major Chinese petrochemical company will soon dissolve a joint venture with Japan's Mitsui, while grappling with deteriorating earnings as industrial overcapacity spills over internationally. © Getty Images
