The price of stopping China

Pascal Lamy warns that China's export overcapacity is undermining global trade, causing structural damage to economies. China's internal consumption remains low, forcing reliance on exports. The country’s economic strategy includes monopolizing rare earth elements, giving it leverage over competitors. Recent export controls initiated by Beijing threaten to increase production costs in Europe and North America, potentially escalating trade tensions. Lamy emphasizes the need for serious negotiations to address these challenges.