Overcapacity

Overcapacity refers to a situation where an industry's production capacity exceeds the market's demand for its goods, often leading to price wars and economic inefficiency. It is a term frequently used in trade disputes to describe an imbalance where a country's output significantly outstrips global consumption.

Why it’s in the news: It is in the news as a central point of trade friction between China and Western nations, who accuse China of flooding markets with subsidized goods, while China disputes the claim as a reflection of its industrial success.

Latest on Overcapacity

• China rejects 'overcapacity' claims in sweeping rebuttal against US, EU
• ‘Overcapacity’ talk reflects a West irked by China’s industrial rise
• What fuels global trade imbalances: China’s overcapacity or America’s failure to adapt?
• Beijing seeks to rein in overcapacity and destructive price wars in industries it spent years subsidising into global dominance

Connections

3 entities linked to Overcapacity across the news graph.