How Chinese overcapacity threatens the Global South | Business Beyond

China generally has a big trade surplus, but domestic economic problems have pushed it into overdrive. The world’s second largest economy is exporting on a massive scale. Critics say this is ‘overcapacity’ and that China is ‘dumping’ its excess production around the world. For many developing economies of the Global South, that is a threat to their own manufacturing bases, and many are responding with tariffs. From Brazil to India, Chile to Indonesia, China faces new trade barriers as it seeks to pivot its exports away from an already sceptical West. In this episode of Business Beyond, we consider how Chinese overcapacity threatens the Global South and how the world’s developing economies are dealing with the challenge.

Chapter Breakdown

1. Introduction - 00.00
2. Chinese overcapacity - what is it and why - 01.23
3. Rising trade barriers - 05.12
4. The balancing act - 09.55
5. India: Collaborate or compete? - 13.44
6. Brazil: An evolving relationship - 18.35
7. Conclusion - 22.03

For more from the experts we spoke to:

#china #businessbeyond #globalsouth

Follow DW on social media:

[jamesmiller]

What does over capacity mean because in the late 90s and early 2000s, when Europe was flooding the global south with expensive appliances, no one talked about over capacity, and this makes it difficult for us to understand what is meant by over capacity.

[kz-xvou]

When it favored the West, it was called productivity and efficiency and was a sign of their how good their economic model was. Now that they are at the receiving end suddenly, its oveecapacity and is a bad thing. People are not fools you can only do this kind if nonsense for so long

[Shining]

Sounds more like envy or jealousy to me. Best wishes to China for peace and economic prosperity.

[BJ-kv]

No.. Its not true.
Africa is not threatened by Chinese products

[kennethkong]

When IBM, Ford, ruled the world, that’s not overcapacity. What about Facebook, google, Microsoft,

[jokejoker]

when germany export 80% their cars prdocution but blame china overcapacity when china export just 15% their car production

[HarryYouKnowWho]

German VW has been over capacity for decades. Is it not?

[xyz-gnxq]

Trade between China and global south grows steadily, despite of “being hurt “ as described by DW. Could it be that DW is projecting German economic pain being experienced now?

[keirenle]

When DW says the overcapacity threatening the global south, they mean Germany 🤣🤣🤣

[周羽-vj]

China's total exports in 2023 was 3.6 trillion dollars, while Germany's total exports was 1.66 trillion dollars, in 2023 China’s population was 1.42 billion, while Germany has 84.55 million population, who is "overcapacity"?

[เจนทัศน์เชวงเศรษฐกุล]

If no overcapacity then no trade between countries. Stay isolation the same as 5000 years ago.

[nukiolbartes]

Lets talk about US military overcapacity

[xdhwowbob]

Just one example, Thailand, before China enter its car market, Thailand car market was dominated by Japanese cars, after China entered, Japanese car price dropped by 40% in Thailand. And different from Javanese car maker prefer Japanese companies for components, Chinese car maker source from anyone with better price and quality, Thailand local car parts industry also boomed.

[VicharB]

What I, as a consumer, am thankful to Chinese manufacturers, as I have access to cheaper goods, most of what I buy are on par when it comes to the best in the world. As per overcapacity, I do not concur. Make better and cheaper and then western companies will be in position to compete globally; this is true for other Nations as well.

[yongchen]

if it was not china, the world would be undersupply. an iphone would be cost $3000 and a laptop would be cost $2000. a toyota corona would be $40, 000 each. Nvdia chip cost $50, 000 per chip and there is only one company making its chip and only one company producing those chip machine. undersupply, monopoly, price fixing, and market manipulation is bad for consumers.

[MgWynn]

China is in global Souths. DW try to isolate China from global Souths. Where did you find this narrative. Unbelievable...😂😂😂😂

[ramthian]

You people don’t have to be jealous of China 🇨🇳 ok👍

[andia]

The scariest thing is US overcapacity in making bombs and weapon of mass destruction. What does it mean? Those stocks should always be used to deplete stocks in warehouse, meaning constant wars and conflicts.

[tristanx]

not "cheap" Chinese export. Chinese price is the norm while European products/goods and salary/wages are OVERPRICED discriminably.
The West, Europe, and Japan hugely exported high-tech and brand-named fashions for 100 years around the world which basically monopolizing the market YET no one claim or talk about OVERCAPACITY.
Hypocrites...

[calvinang]

DW should pay attention to its own domestic issues iso minding the affairs of other countries.