Overcapacity in China’s auto manufacturing has become an acute point of tension between the country and other big economies. The complaint heard from the West is, broadly, that Beijing’s industrial policy has unfairly advantaged Chinese companies, resulting in an impending tidal wave of below-cost exports.

In turn, this has raised fears of an existential crisis for national marques including Germany’s Volkswagen, Japan’s Toyota and American icons of GM and Ford.

Financial Times