The term "overcapacity" is frequently invoked to explain China’s dominant position in global manufacturing, but economists argue this explanation is flawed. Simply having large production volumes, robust exports, or declining prices doesn't automatically indicate excess capacity. The narrative overlooks deeper economic factors at play. Attributing China’s success solely to overcapacity is an oversimplification of a complex situation. A nuanced understanding requires examining broader economic principles, not just production numbers. This perspective challenges the prevailing discourse surrounding China’s manufacturing capabilities and the resulting trade tensions. The debate necessitates a move beyond simplistic labels to analyze the actual dynamics of supply and demand.