South China Morning Post

Chinese overcapacity isn’t a numbers problem. It’s a productivity gap

Beijing has spent the past month attempting to turn one of the West’s sharpest economic accusations back on itself. On July 28, the Ministry of Commerce rejected the link between subsidies, weak domestic demand and Chinese overcapacity, arguing China’s export strength reflected innovation and economies of scale. Last week, a People’s Daily commentary went further, calling claims that state subsidies caused China’s industrial overcapacity a deliberate smear. Beijing’s rhetoric is escalating...

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Chinese overcapacity isn’t a numbers problem. It’s a productivity gap
Chinese overcapacity isn’t a numbers problem. It’s a productivity gap

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