Published: July 24th, 2024,
Last updated: July 24th, 2024

In May, US President Joe Biden’s administration accused China of „flooding global markets“ with „artificially low-priced exports.“ Such accusations are not new, nor are they likely to stop any time soon. But many of those complaining about Chinese overcapacity overlook a critical fact: China’s net exports have been falling relative to GDP since 2008, and its trade surplus in goods has shrunk to less than 2 percent of GDP.