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Expansion Breeds Overcapacity
Chinese automotive manufacturers are aggressively expanding into international markets following a phase of rampant domestic production, leading to severe overcapacity. With numerous vehicles, such as a $21,000 electric car, being exported to regions like Israel, Southeast Asia, Brazil, and Mexico, this strategy indicates a shift to focus on exports after saturating the local market. Notably, the influx of Chinese cars is causing concern in Europe, where half of China's car exports are now directed, raising issues around unfair trade practices amid fears of overwhelming competition.