How do we deal with Chinese overcapacity?
The summit between Presidents Donald Trump and Xi Jinping produced some lowering of tariffs but no agreement on overcapacity and trade. The European Union and China established a working group on macroeconomic imbalances in May, which has not produced results, and European Commission president Ursula von der Leyen said patience is running out. European manufacturers face stiff competition from Chinese counterparts, and political leaders across Europe are calling for more action.
Why it matters: This underscores the theme of overcapacity in global trade.