Opinion | Chinese overcapacity isn’t a numbers problem. It’s a productivity gap
- Posted on August 18, 2026
- By South China Morning Post
- 1 Views
- 1 min read
China's industrial overcapacity reflects a deeper productivity transformation rather than mere manufacturing excess. Modern Chinese factories leverage advanced battery technology, sophisticated automation systems, and optimized supply chains to achieve superior cost efficiency compared to legacy competitors. This technological divide suggests that older production facilities may have become economically unviable in an evolving market landscape where innovation and operational efficiency determine competitive advantage and market survival.
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