How do we deal with Chinese overcapacity?

The summit between Presidents Donald Trump and Xi Jinping did not deliver much, except for some lowering of tariffs, and there was no agreement on long-term challenges of overcapacity and trade. Companies are still complaining about a second China shock.

The European Union and China established a working group in May of this year on "macroeconomic imbalances," but it has failed to produce results so far, and European Commission president Ursula von der Leyen has said that patience is running out. Meanwhile, European manufacturers continue to face stiff competition from their Chinese counterparts, and political leaders across the continent are calling for more action. The European Union has a growing toolbox against unfair trade and coercion, but is it ready to use it? Is there a way to deal with Chinese overcapacity and find a reasonable way forward? Can managed trade be a solution, or are we headed towards accelerating trade tensions? Can the European Union and the United States work together to address the overcapacity problem?

HOST

Cecilia Malmström
Nonresident Senior Fellow, Peterson Institute for International Economics (PIIE)

GUESTS

Alicia García-Herrero
Senior Fellow, Bruegel; Chief Economist for Asia Pacific, Natixis

Nicolas Lamp
Associate Professor, Faculty of Law, Queens University, Canada

Yeling Tan
Professor of Public Policy, Blavatnik School of Government, University of Oxford; 
Nonresident Senior Fellow, PIIE