High US tariffs on China have raised concerns in the EU of Chinese goods being rerouted from the US to Europe. This has also rekindled an ongoing discussion about overcapacities in the Chinese industry. Why are they a danger to European industries? What drives them in China? And what options do European decisionmakers have?

Max J. Zenglein, Chief Economist at MERICS, and Jacob Gunter, Lead Analyst at MERICS, are two of the lead authors of the recent report “Beyond overcapacity: Chinese-style modernization and the clash of economic models”. They join Johannes Heller-John for this podcast episode to share their findings.

More information:

• MERICS: Beyond overcapacity: Chinese-style modernization and the clash of economic models
• MERICS: Staying focused: Priorities for transatlantic China policy coordination
• EU Chamber of Commerce in China: Made in China 2025: The Cost of Technological Leadership