Its economy is glutted with excess capacity generated by decades of subprime lending. The main markets where it used to dump its products—North America, Europe, and Japan—are increasingly unwilling to absorb an endless flood of Chinese goods. Since 2008, China has responded to these trends with a two-step plan. First, lend more than a trillion dollars to foreigners so they buy enough Chinese goods and services to keep CCP Inc. in business.13 Second, use the proceeds to become a technological powerhouse by pumping investment into R&D, buying and stealing foreign technology, and using subsidies
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