US Can Benefit from China's Industrial Overcapacity, Not a Problem but Opportunity
February 8, 2026
Western media label China's industrial 'overcapacity' as a problem. However, China efficiently produces goods like solar panels, batteries, electric vehicles, and steel more cheaply than others. The common Western view suggests China makes excess goods hoping foreign markets will buy the surplus, leading to waste and market collapse. Yet, China pursues economic growth by lowering prices on essential goods, creating affordability and abundance. In contrast, the US economy measures success by rising asset prices like stocks and housing, even when prices exceed wage growth. This shows a major difference: China values deflation in physical goods as economic health, while the US focuses on inflation in financial assets. The US lacks an economic strategy to generate real abundance like China’s. Understanding and adapting to this contrast could help the US benefit from China's production strengths instead of viewing it as a threat.
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Tags:
China
Overcapacity
Us economy
Industrial Production
Economic growth
Asset Inflation
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