EconomyFour misconceptions behind the ‘overcapacity’ debate
The article argues that industrial subsidies, trade surpluses, economic imbalances and market competition are often wrongly treated as proof of overcapacity. Capacity should be assessed relative to demand, costs and the relevant time horizon. Strong exports, high output or lower prices alone do not establish excess capacity, while macroeconomic imbalances and inefficient industrial capacity require different remedies.
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CGTN★★★☆☆2026-08-24 02:22Original
Four misconceptions behind the ‘overcapacity’ debate
Economy