China has piles of cash, which means huge capital splurges in all directions. Which has caused a global glut of stuff. Steel, aluminium, rubber ... and consumer electronics.
We are not off to an auspicious start:
China has piles of cash
No. China prints piles of cash. Not the same. China also has lots of Federal Reserve Notes, realistically called "paper with pretty pictures" (or else promises by the unborn US generation to pay things back eventually if one extends leftist thinking that we just 'owe it to ourselves')
China has pulled in the concrete and steel so far like no-one else
That particular bubble of malinvestments is now deflating and built-up overcapacity is showing itself.
This is what causes a global glut of steel and other stuff for constructions.
Inb4 "MUH INDUSTRIAL JOBS"
Wearables are perhaps the most obvious symptom of overproduction, because they remain a solution looking for a problem.
"Overproduction" does not exist as such, unless you have a company or a whole sector that wants to commit suicide quickly. Malinvestments due to easy cash, which is then sold by politicians and "economists" as "getting out of the recession" but is just another way to burn down the house while you smoke grass to keep calm, is, however, what we are looking at here.