Opinion Piece: China’s ‘new productive forces’ risk overcapacity bubble
In this piece for Asia Times, Bruegel Senior Fellow Alicia García-Herrero describes how China’s increasing focus on production as a means to secure the country’s growth might face significant challenges due to the increasingly protectionistic nature among world economies. Simply put, if there is no one to absorb China’s additional production then this production will not contribute to Chinese growth in the manner that the Chinese government counts on. The question therefore remains on how other markets, not least the American and European, will react to the Chinese production strategy.
