Overcapacity; National security; Japan and chip controls; Moutai; Big food concept

Happy Mid-Autumn Festival! 中秋节快乐! Today is the last day of the holiday, the PRC is back to work Wednesday.

Summary of today’s top items:

1. More US jawboning on overcapacity - Jay Shambaugh, the US Department of Treasury’s undersecretary for international affairs, is leading a delegation of US officials to Beijing this week for another round of meetings of a US-China economic working group. The Wall Street Journal reports that overcapacity will be on the US agenda, though I am not sure what the US side will accomplish since the PRC side is now adamant that the idea of overcapacity is a Western construct designed to suppress China. So unless the latest round of warnings from the US are credible, costly, and imminent I would not expect any progress, and even if they are there may be no progress in the PRC moving away from what Xi as core features of the country’s economic system.

2. Put safeguarding national security in a more prominent position - Ma Baocheng, dean of the National Academ…