US-Europe Gripes on China Overcapacity Aren’t All Backed by Data
- Data shows overcapacity concentrated in solar and batteries
- EV makers more efficient rather than laden with overcapacity
In Washington and Brussels, there’s a consensus that China is experiencing a surge of excess capacity that could wipe out overseas industries, spurring protectionist measures to stem the damage.
“China’s overcapacity distorts global prices and production patterns,” US Treasury Secretary Janet Yellen said ahead of her visit to the country this week, highlighting solar panels, electric vehicles and batteries. There are similar concerns in Europe, with EU Commission chief Ursula von der Leyen citing overcapacity as a reason for opening an anti-subsidy probe into Chinese EVs.