Recent months have seen growing scrutiny on China’s trade policies. The US and various European Union governments have accused Chinese producers of attempting to address its industrial overcapacity by dumping its goods in global markets. Weakness in China’s domestic consumption, growth in industrial output and rising export volumes and falling prices make a reasonable case for accusations of overcapacity and potentially dumping (with the latter having a higher burden of proof). Failure to effectively address these concerns could trigger a fresh trade war. China’s investment-led growth has led to overcapacity: There ... (full story)