"Over-producing" isn't really a thing. You're complaining about supply outstripping demand causing prices to fall - that's always going to happen with any mass produced goods.
It sounds like the real issue is that doing R&D in the U.S. is uncompetitively expensive compared to doing the same work in China.
It sounds like the real issue is that doing R&D in the U.S. is uncompetitively expensive compared to doing the same work in China.