Demystifying China’s Overcapacity: How Oversupply Shapes a Nation—and the World

For decades, China has amazed the world with the sheer scale and speed of its industrial rise. From steel and cement to EVs and solar panels, the “world’s factory” has not just met demand—it has often overwhelmed it. But what happens when production outpaces consumption so dramatically that supply floods domestic and global markets? Welcome to the complex reality of overcapacity in China—a story of cheap goods, economic friction, and deep structural imbalances.
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