Reuters — U.S. Treasury Secretary Lew Says Excess Capacity "Corrosive" for China Growth

Being able to produce "to excess" is corrosive for growth? In what universe is that?

What to do with that "excess" steel. Make armaments for defense and export?

But where will China get the munnie? Uh, they issue the munnie.

Hopefully, the people running policy in China did not go to school in the West and are still able to realize that excess capacity" just means deficient demand.

“Excess capacity ultimately is corrosive of an economy’s efficiency,” Lew said. “It means you have misallocation of resources, it means that ultimately, the only way to clear the market is to sell things at a price that is below what the world market price would otherwise be.”

Uh, I thought they called that competitiveness.

The US seems to have two different economic textbooks. One for use in the US and another for abroad.

This is like the US complaining that other countries are arming as the US military approaches their borders.

Are these people for real? Or are they putting us on?

Fortune
U.S. Treasury Secretary Lew Says Excess Capacity "Corrosive" for China Growth
Reuters