First, domestic consumption has never been an engine for growth in China, unlike India, which is more accepting of consumerism. Exports have been THE engine for growth, along with capital investment, where overcapacity has never been a concern. Whether in the property or industrial sectors, they take an “if you build it they will come” approach. They’ve built massive projects on faith demand will follow. And they default to dumping when it comes to their industrial overcapacity - as the previous link mentions, it’s a feature, not a temporary bug, of their economy.

Seeking improved consumerism after Covid restrictions abruptly ended was a Hail Mary attempt at a new growth engine, which failed. So the overcapacity remaining in many sectors is simply dumped on the world. The tariffs are not an American project during an election year. They are a concern echoed from Europe to Japan. Because the concerns are based on data.