Good evening. China’s overcapacity is a known danger to its economy: As early as 2009, the State Council was highlighting it as a “serious problem.” And yet, here we are in 2025 and Beijing has repeatedly sidestepped the issue. Jörg Wuttke, formerly of BASF China and the European Union Chamber of Commerce in China, argues in this week’s op-ed that the situation is nearing its breaking point — and much like the property sector crash, it won’t be pretty.
Elsewhere, we have a reported piece on how China’s big tech companies are pivoting to healthcare; infographics on how High-Flyer, the company behind DeepSeek, went from high finance to high tech in less than ten years; a deep dive into the private businesses invited to meet with Xi Jinping last week; and a Q&A with Senator Tom Cotton on why the threat from China is greater than many believe.
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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, argues Jörg Wuttke.
China’s Tech Giants Look to Healthcare
Big tech companies see an opportunity in healthcare but making their businesses profitable has been a challenge to date. Yi Liu reports.
The Big Picture: Charting High-Flyer’s Rise
How did a quantitative hedge fund pave the way for DeepSeek? This week’s infographics by Noah Berman chart High Flyer’s history and evolution as well as the web of corporate entities that founder Liang Wenfeng has stakes in.
A Seat at Xi’s Table
Chinese leader Xi Jinping sat down with a group of 31 private entrepreneurs on Monday, only the second such gathering Xi has held. To understand the implications and messaging, Eliot Chen and Rachel Cheung did a deep dive into the invite list and the seating chart of the companies represented.
A Q&A with Tom Cotton
Tom Cotton is the junior United States senator from Arkansas and chair of the Senate Intelligence Committee. In recent years, he has become an increasingly outspoken China hawk and a prolific sponsor of legislation to get tough on the country, including a recent bill to revoke China’s permanent normal trade relations status. He is the author of a new book, Seven Things You Can’t Say About China, an “inside story on how deeply the Chinese Communist Party has infiltrated America.” In this week’s interview with Eliot Chen, he talks about the book; why he believes Beijing is aiming to eclipse the U.S.; the need for an immediate ban on TikTok; and his view on Elon Musk’s ties to China.
Tom Cotton
Illustration by Kate Copeland
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