I don't understand why everyone is so obsessed with "China manufacturing overcapacity."
This isn't new. We saw the same thing with Japan, and the solution was simply to deflate the value of the USD/EUR relative to the Yen. Do the same thing relative to the RMB and you would solve all of these overcapacity issues.
Of course, the West likes the benefits of having a strong currency without appreciating the costs.
A shower thought on "Chinese vassalage":
The DPRK, whose dependence on China is extensive and extremely well-documented, still has an absurd amount of flexibility, self-determination, and independence from Chinese policy. It's essentially the "worst case scenario" in terms of Chinese influence... And the DPRK was still allowed to develop it's own nuclear weapons despite Chinese opposition. What are the odds that Canada would be allowed to develop an independent nuclear weapons program today? Cuba? Mexico?
Zero.