ANALYSIS: China’s Party-State Capitalism Distorts Global Markets

News Analysis China’s weak domestic demand has prompted the country to ramp up exports of cheap goods, leading to a global glut of excess capacity worth trillions of dollars. This has led to significant global economic distortions and triggered a backlash from several countries, including the United States. U.S. Treasury Secretary Janet Yellen concluded a four-day visit to China on April 9, during which she repeatedly urged Chinese authorities to address their overcapacity problems to prevent global spillovers. Her primary goal during the trip was to persuade Chinese officials to curb overcapacity in clean energy technologies such as electric vehicles (EVs), solar panels, and lithium-ion batteries, which threaten competing companies in the United States and other countries....