“Addressing these troubles may well warrant our taking defensive motion to safeguard our firms and staff — and the standard Instrument kit of trade actions may not be enough,” Mr. Shambaugh included. “More Innovative methods might be required to mitigate the impacts of China’s overcapacity.”
“When periodic surpluses can take place inside normal small business cycles, we are worried about structural overcapacity, which stems from persistent patterns of overinvestment which is facilitated by intensive condition assist.”
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“In nowadays’s interconnected economic climate, these overcapacity can also lead to the concentration of supply chains in ways in which ultimately cut down financial resilience,” Mr. Shambaugh mentioned in remarks on the Council on International Relations.
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