China’s overall manufacturing overcapacity has peaked as global demand picks up in consumer sectors, the Economist Intelligence Unit said, predicting trade tensions will persist due to Chinese companies’ rising competitiveness. “We consider the worst of China’s excess industrial capacity to have already passed,” the EIU said, adding that a slowdown in investment by firms seeing lower profitability will lead to slower capacity growth. The report feeds into a global debate over the idea that China’s industry is experiencing unusual overcapacity that’s depressing prices, with US Treasury Secretary Janet Yellen and ... (full story)