The issue of overproduction in China’s manufacturing industry and its global impact has been gaining attention. According to a report, the Chinese government is focusing on supporting manufacturing rather than promoting household consumption. As a result, the Chinese market is slow and surplus products are being exported overseas. Additionally, due to the significant increase in Chinese exports, petrochemical imports have been reduced significantly, affecting related companies in Europe and the United States due to increased local production capacity and tight domestic demand.
The report emphasizes that the issue of trade imbalance is not limited to the EU and the United States alone. From 2019 to 2023, China’s trade surplus with the seven major industrial countries (G7) increased by one-third. Moreover, developing countries like Brazil, India, Mexico, and South Africa have also started to express dissatisfaction with the situation. If this imbalance continues, China may face severe counterattacks from both developed and developing economies.
Instead of stimulating domestic demand, the Chinese Communist Party is now focusing on strengthening manufacturing. However, this strategy’s success depends on whether the world outside China is willing to absorb its excess output.