Overcapacity Issues Grip China’s Thriving New-Energy Industry
China’s flourishing new-energy industry, from electric car batteries to solar panels, faces a critical challenge of overcapacity, threatening its potential as a new economic driver.
Overcapacity Ripples Through Renewable Sector
The surge in interest from both domestic and foreign players has resulted in an “involuted” industry, with fierce competition causing overcapacity issues, especially in lithium, a vital battery component.
Global Implications as China Tackles Overcapacity
China’s overcapacity problem in the new-energy sector extends beyond its borders, with global trade barriers impacting solar-panel exports, electric vehicle tariffs, and international concerns about China’s dominance in the industry.
In Summary:
China’s new-energy sector faces overcapacity challenges, impacting domestic and international markets. As the country looks to address this issue, the global implications underscore the need for strategic solutions and international collaboration.
Source：scmp.com
