China’s export powerhouse is feeding global demand for cheaper electronics, cars, clothing, and plenty more besides. But the supercharged competition driving that trend is causing problems within China itself, including deflation and thin or negative profit margins. China’s government has recognised the problem, but what is it actually doing in response – and how should the country’s trading partners react? Soumaya speaks to Yanmei Xie, senior associate fellow at the Mercator Institute for China Studies, to discuss.

Subscribe to Soumaya’s show on Apple, Spotify, Pocket Casts or wherever you listen.

Presented by Soumaya Keynes. Produced by Josh Gabert-Doyon and Mischa Frankl-Duval. Manuela Saragosa is the executive producer. Original music and sound design by Breen Turner. The FT head of audio is Cheryl Brumley.

For China, ‘involution’ is a blessing as well as a curse

Why China is reluctant to make a much-needed shift

Fall in Chinese investment suggests Xi Jinping’s ‘anti-involution’ drive is biting

China battles price wars in fight against deflation

Read a transcript of this episode on FT.com

View our accessibility guide.