China’s Overcapacity Ignites Trade Tensions With US, Europe

What the CCP is orchestrating transcends market economics; it's an exercise in economies of scale, pursuing sheer size for efficiency gains. The goal is to bolster enterprises to achieve unassailable monopoly power. This photo shows BYD electric cars waiting to be loaded onto a ship for export at a port in Yantai, in eastern China's Shandong province on April 18, 2024. STR/AFP

News Analysis

When the leader of the Chinese Communist Party (CCP) recently attended diplomatic meetings during his European visit, his counterparts were deeply concerned, claiming that China was flooding global markets with excessive production. Claims that Xi Jinping denied. Analysts disagree, asserting that this practice, combined with the fact that the CCP is granting substantial subsidies to various industries such as electric vehicles, represents a calculated strategy of socialist economies of scale aimed at securing dominance in international markets and exerting global influence.