Following a drastic economic slowdown that has worsened what was an already weak consumer spending sector, China is struggling with domestic over-capacity in EV’s, solar panels, and other manufactured goods. With Chinese manufacturers left with few domestic options for respite, they have turned to export markets instead.
With the hope of “exporting their way out” of trouble, they are aggressively taking on outside competitors. International prices have tumbled as a result, as Chinese manufacturers are cutting prices and trying harder to muscle into overseas markets.
So far, this has not been appreciated.
Keep reading with a 7-day free trial
Subscribe to The Young Economist to keep reading this post and get 7 days of free access to the full post archives.