overcapacity

The article discusses the Western concern over China's 'overcapacity' in clean energy production, highlighting Europe's contradictory stance on needing cheaper clean energy solutions while criticizing China's manufacturing of solar panels, wind turbines, and electric vehicles. Bruegel, a Brussels-based think tank, released a working paper examining how green infrastructure investments might address China's clean-energy overcapacity.

G7 leaders at a summit in France failed to reach a public agreement on addressing China's overcapacity and currency manipulation issues, overshadowed by conflicts in Iran and Ukraine and U.S. President Donald Trump's influence. The article references a potential new Plaza Accord for China, highlighting unresolved tensions over Chinese exports impacting Europe.

Western policymakers in Washington and Brussels claim China's overproduction in steel, electric vehicles, and green technology is flooding markets, but the article argues this is a smokescreen for Western protectionism and double standards. Economic data is presented as contradicting the 'overcapacity' narrative.

Sales of electric vehicles (EVs) in China recovered in May as new models with advanced technology attracted buyers. Zeekr and Leapmotor, supported by Geely Auto and Stellantis respectively, set delivery records, driven by local government subsidies boosting consumer demand.

China's two-year campaign to address solar industry overcapacity has failed to resolve the issue, as illegal factories persist, causing price wars, financial losses for domestic firms, and protectionist policies abroad. Excess capacity continues to plague the sector, with supply chain firms operating at a loss.