As China's real estate sector grapples with a downturn and consumer demand wanes, one might expect a dip in the nation's export activities. Contrary to expectations, Chinese factories have ramped up mass production for international markets, causing a stir among Western countries, Business Insider reports. The surge in goods from China has sparked significant concern in the West, suggesting these are not merely everyday items but perhaps indicators of an overproduction issue threatening to overwhelm global markets. China appears to be attempting to mitigate its overproduction dilemma by distributing its goods globally, yet the international market seems unprepared for such abundance. This scenario has prompted US Treasury Secretary Janet Yellen to visit China to discuss the issue of over-manufacturing. China's solution to the overproduction problem has been to initiate global sales with discounts, with solar panels emerging as a leading export product. The abundance of these panels has led some to consider innovative applications, such as converting garden fences into mini-power stations. This flood of goods is causing consumers worldwide to reconsider the potential of integrating solar panels into larger projects, like roofing. Janet Yellen's trip to China, aimed at addressing the issue of excess capacity, marks her as one of many US officials to visit the country under President Biden's administration. Her participation in an event organized by the American Chamber of Commerce in Guangzhou will likely include discussions on balancing China's production with global demand. Yellen has voiced concerns over China's manufacturing capacities, which significantly exceed both domestic demand and the planet's ability to assimilate Chinese products. This issue is causing apprehension not only in the US but also across Europe, Mexico, Japan, and beyond. As China shifts focus from low-cost manufacturing and real estate to "green technologies," it seems poised to flood the market with solar panels, electric vehicles, and lithium-ion batteries. However, it appears Chinese consumers are not ready to spend as before, and factories are challenged to sell their goods without incurring losses. The concern over China's export strategy is not limited to the US. The European Union is also striving to protect its production in the chip and electric vehicle sectors, where competition with China is particularly intense. The global economy may be on the cusp of a new era where the mantra shifts from "who produced more" to "who produced just right."
