By The Financial District
Apr 31 min
China’s factories are churning out more steel, cars, and solar panels than its slowing economy can use, forcing a flood of cheap exports into foreign markets, Hanna Ziady and Laura He reported for CNN.
The US and the EU are fretting over potential “dumping” by China — that is, exporting goods at artificially low prices.
The oversupply of Chinese goods in key industries is stoking tensions between the world’s biggest manufacturer and its major trading partners, including the US and the European Union (EU).
Its global trade surplus in goods has soared and is now approaching $1 trillion.
China needs to increase exports as a key measure to revive its economy, which is grappling with a protracted property slump, weak household spending, and a shrinking population among other problems.
The US and the EU are fretting over potential “dumping” by China — that is, exporting goods at artificially low prices — with electric vehicles among the products caught in the crosshairs.
“Europe cannot just accept that strategically viable industries constituting the European industrial base are being priced out of the market,” Jens Eskelund, president of the European Union Chamber of Commerce in China, told reporters earlier this month.