China faces two primary mechanisms to address its gross excess capacity (a result of the post-1994 system): create additional domestic demand or destroy productive capacity, and having abandoned a reflation program launched in August that was canceled in January, China is now focused on capacity destruction as its strategy.

factualpending

Speaker

Russell Napier

Evidence Quote

China has to find a new way of doing things because it has gross excess capacity, one of the reasons it's selling stuff so cheaply. So, there are two ways you can deal with that, create demand, destroy capacity.

Source

Understanding The AI Opportunity with Russell Napier | The 2025 Prime Quadrant ConferencePrime Quadrant
Created: 8/11/2026, 7:40:36 AM

My Notes

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