Some EU officials believe Beijing is trying to distract from what they consider to be serious problems by poking holes in the terminology
Beneath the geography-free legalese so common in Brussels, China was undoubtedly the subject. The conference, organised by the European Commission, was designed to thrash out solutions to the problem of overcapacity in China’s economy and the second-order effects Europe fears.
Decades of overinvestment and state subsidies in China, weak domestic consumption, an addiction to manufacturing, crashing corporate profits, zombie companies that the state does not let die and a superpower trade war have, the EU believes, created a perfect storm.
Why the EU, US are concerned about China’s overcapacity
China’s industrial overflows must go somewhere, Brussels thinks, probably at a discount, and the only logical destination is Europe.
