The EU Chamber of Commerce has released a report, Overcapacity in China: Causes, Impacts and Recommendations.

Overcapacity is a blight on China’s industrial landscape, affecting dozens of industries and wreaking far-reaching damage on the global economy

The reports says China's stimulus package has made this overcapacity much worse.

One of the problems is China dumps it's excess goods onto the market, selling them for much less than the cost to produce.

This hurts other national economies in terms of wiping out their domestic industries through unfair competition.

I think the report is a little polite, ignoring China's intentional and strategic market dumping and other strategies to capture yet another manufacturing sector for itself long term.