Forget “de-risking,” the phrase the West unveiled last year at the G7 in Tokyo.
Now, it’s “overcapacity.”
Overcapacity, a phrase spreading in use, is the West’s new strategy to combat China. It hinges on the idea that China is exporting above normal quantities, driven by its massive manufacturing engine. As huge amounts of Chinese exports go abroad, they are flooding economies, jeopardizing local businesses and economic strategies (like bolstering local manufacturing), and scaring governments all over the world who want their local industries to thrive.
In the end, it is China who has the upper hand as consumers buy a fresh round of cheap Chinese goods.
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