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Opinion

What the world gets wrong about China's overcapacity

Many policymakers confuse productive capacity with production output

| China
Employees work on the production line at a factory for Chery's electric vehicles) in Wuhu, Anhui province, China, on July 29.   © Reuters

Tristan Kenderdine is research director at Future Risk.

There is cyclical confusion in the analytical community whenever China's industrial overcapacity gets out of whack, with analysts, policymakers and even the European Commission confusing productive capacity with production output.

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