Why does China overproduce eveything?

Tuesday 22 July 2025

Goldman with the note.

…the Central Commission for Financial and Economic Affairs (CCFEA) meeting chaired by President Xi on July 1 called for building a “unified national market” to discourage local protectionism, as well as regulating disorderly price-cutting and excessive competition among producers.

For background, the CCFEA held a meeting on the “healthy development of the platform economy” in March 2021 (followed by an internet crackdown) and a meeting on “preventing and resolving major financial risks” in August 2021 (followed by “three red lines” and property market deleveraging).

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.