Why It's So Hard to Fix China's Overcapacity and Brutal Price Wars. Lizzi Lee, Fellow, Asia Society Policy Institute

In the "Driving with Dunne" podcast, Michael Dunne interviews Lizzi Lee, an expert on the Chinese economy, about the phenomenon of overcapacity in China, particularly in the electric vehicle sector. Lizzi explains that overcapacity, while a headache for Chinese firms, stems from bureaucratic, financial, and corporate systems incentivizing local officials to prioritize visible growth and production within their jurisdictions. This leads to an overproduction of goods, including EVs, creating both domestic and international challenges. The discussion explores potential responses from the United States, including tech transfer agreements, and delves into the complexities of US-China trade relations, highlighting the need for clear strategic goals and a nuanced understanding of China's economic system.