Trump's tariff war deepens China's overcapacity dilemmas

From steel to solar, export barriers threaten deflationary spiral

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A production line for aluminum products at a factory in China's Anhui province in February. The country faces a vicious cycle where low profits and weak demand reinforce each other, as companies curb new investments and shed workers. (China Daily via Reuters)

STELLA YIFAN XIE

HONG KONG -- Donald Trump's renewed tariff row with China is set to worsen a key problem confronting the world's No. 2 economy: a glut of cheap goods for which companies are struggling to find enough buyers.

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