ANALYSIS: China’s Party-State Capitalism Distorts Global Markets

During Janet Yellen’s recent visit to China, she urged Chinese authorities to address their overcapacity problems to prevent global spillovers.

Electric cars for export waiting to be loaded on the "BYD Explorer NO.1," a domestically manufactured vessel intended to export Chinese automobiles, at Yantai port, in eastern China's Shandong Province, on Jan. 10, 2024. STR/AFP via Getty Images

News Analysis

China’s weak domestic demand has prompted the country to ramp up exports of cheap goods, leading to a global glut of excess capacity worth trillions of dollars. This has led to significant global economic distortions and triggered a backlash from several countries, including the United States.