According to a report by the EIU, China’s industrial overcapacity has reached its peak.

The Economist Intelligence Unit predicts that China’s manufacturing overcapacity has reached its pinnacle, propelled by a surge in global demand for consumer goods. However, they anticipate ongoing trade tensions due to the escalating competitiveness of Chinese companies. The EIU asserts that the era of China’s excessive industrial capacity has likely come to an end, citing a slowdown in investment from firms experiencing diminished profitability, which will result in a deceleration in capacity growth.