Overproduction: Overproduction Overproduction and Market Demand

overproduction: However, in our opinion, the most important risk Chinese companies now face is overproduction, according to Global Times China. Overproduction happens when a company, driven by capital, produces more than the existing market demand. Of course, they are crucial. The mass overcapacity China has experienced is a typical feature of overproduction. In the past, the country has participated in globalization with its cheap manufacturing costs and production factors. There are historical reasons why China's development has faced this hazard. (news.financializer.com). As reported in the news.