China’s surplus production of steel, cars, and solar panels is surpassing its domestic demand, resulting in a flood of inexpensive exports to global markets. This surplus is intensifying tensions between China and major trading partners like the United States and the European Union, with concerns of “dumping” low-priced goods onto foreign markets. Despite efforts to shift towards higher-value exports and advanced manufacturing, China’s timing clashes with global economic slowdown and a resurgence in domestic manufacturing initiatives in the West. The oversupply extends to sectors like electric vehicles, solar panels, and wind turbines, threatening industries in Europe and the United States. Efforts by China to increase exports of EVs, lithium batteries, and solar panels face scrutiny, with concerns about unfair competition and national security implications. Trade tensions are mounting, with the US and EU investigating China’s trade practices and considering retaliatory measures. While China’s surplus may help moderate inflation in advanced economies in the short term, it also fuels geopolitical tensions and the risk of tariffs, potentially impacting inflation in the future.