China’s Overcapacity is Finally Reaching its Limits
Beijing has consistently failed to address the root causes of excess supply. The situation may now be out of its hands.
A worker in a factory in China. Credit: Unique Vision via Adobe Stock
Despite creating some of the world’s most impressive companies, China’s supply side policy bias has generated incredible levels of local government debt, destructive price wars, and significant amounts of wasted resources. Leaders have recognized the unsustainability of this situation for years. As early as 2009, the State Council was highlighting overcapacity as a “serious problem” and clearly staking out a desire to mitigate its negative impacts.
During a press conference held
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