https://asiatimes.com/2024/04/the-myth-of-chinese-overcapacity/ The Lucas Paradox is the observation that capital tends to flow from undeveloped countries to developed countries, rather than in the opposite direction as predicted by classical economics. The East Asian economies, Japan first, then the Asian Tigers, then China, developed in spite of this by centrally managed periods of low wages and high forced savings in order to accumulate capital and develop industrially. China is too large for this to continue to work in the face of Western opposition. Therefore, China's strategy is to industrialize the global South by export of capital and other goods.
