China's Ministry of Finance announced a new consumption tax on lithium-ion batteries and solar cells, effective September 1 and April 1 respectively, starting at 2% and rising to 4% a year later, impacting manufacturers and the electric vehicle sector.
China's industrial overcapacity in solar panels, lithium batteries, and EVs exceeds global demand, driven by economic policy rather than market forces. This surplus, fueled by high investment and a shift from real estate to advanced manufacturing, poses a significant challenge to European industries, particularly the automotive sector.
Donald Trump's criticism of China's renewable energy sector is based on domestic politics rather than facts. His claims about Chinese turbines and European buyers overlook China's significant advancements and integration of clean energy into its economic strategy.
The EU has allocated new steel import quotas to its trading partners, increasing tariff-free limits to 18.3 million tonnes and doubling tariffs beyond that, aiming to protect its market from growing global overcapacity, particularly from China, while addressing concerns from allies like the UK, Switzerland, and Ukraine.
G7 leaders at their recent summit in France failed to present a united front against China, issuing milder statements on critical minerals and global imbalances. This comes as the EU and German Chancellor Friedrich Merz express strong stances against China's trade practices and alleged yuan undervaluation.
EU leaders are considering trade defence measures against China's 'overcapacity,' but the author argues this is a misnomer. China's manufacturing growth stems from its integration into global supply chains and adherence to international standards, making its products competitive through efficiency and expertise, not unfair practices.
A Chinese scholar argues that global economic adjustments, not just China's industrial overcapacity, are the root cause of trade imbalances. Huang Yiping noted China's progress in reducing its current-account surplus but stressed the need for increased domestic consumption.
Western policymakers claim China has 'overcapacity' in steel, EVs, and green tech, flooding markets with subsidized goods. However, economic data suggests otherwise, with China's capacity utilization for ferrous metals within healthy EU ranges. The EU and US employ double standards, using arbitrary metrics and bypassing the WTO to impose protectionist measures.
An analysis claims the EU's economic decay over two decades has been three times faster than the late Qing dynasty, challenging Brussels' narrative of Chinese overcapacity. The EU's per capita manufacturing output is significantly higher than China's, suggesting structural dependence on foreign markets.
India disputes US claims of excess capacity in steel and textiles. PM Modi is celebrated for his record tenure. Meta and Reliance Industries partner for an AI data center in Gujarat, while Starlink seeks a license for satellite services.
Global steel overcapacity is set to increase significantly by 2028, driven by state subsidies and expansion outside OECD countries, particularly China. The OECD warns this trend threatens competition and the viability of domestic steel industries worldwide.
EU trade chief Maroš Šefčovič will meet China's trade envoy Li Chenggang in Paris on Thursday amid strained EU-China relations. The EU seeks to address a large trade deficit and Chinese overcapacity, with member states divided on policy.
China threatens countermeasures if EU imposes new trade restrictions to combat Beijing's industrial overcapacity, which is undermining European manufacturing and causing a growing trade deficit.
Spain, Italy, Netherlands, France, and Lithuania are pushing the EU to adopt a more aggressive stance against China's industrial overcapacity, advocating for broader safeguard measures and a new "resilience tool" to counter concentrated supply sources.
Government sources indicate no immediate plans to hike gold and silver import duties, despite calls to curb non-essential gold purchases. Meanwhile, India anticipates US trade talks addressing pending issues, including a Section 301 probe, though a comprehensive deal remains distant. India has contested US allegations of structural overcapacity, urging the termination of the investigation.
Brussels is rallying support among EU industry groups for a trade weapon to tackle Chinese overcapacity, as the European Commission races to propose a sweeping new tool this summer. While the contours of the new instrument remain a closely guarded secret, it is expected to be presented to Commission President Ursula von der Leyen on May 29, at a rescheduled debate on China among all 27 commissioners of the bloc’s executive branch. The South China Morning Post previously reported that the...
Brussels is rallying support among EU industry groups for a trade weapon to tackle Chinese overcapacity, as the European Commission races to propose a sweeping new tool this summer. While the contours of the new instrument remain a closely guarded secret, it is expected to be presented to Commission President Ursula von der Leyen on May 29, at a rescheduled debate on China among all 27 commissioners of the bloc’s executive branch. The South China Morning Post previously reported that the...
Chinese battery cell manufacturers are poised to benefit from the US-Israeli war in Iran, according to Fitch Ratings, even as fierce competition, overcapacity and thin margins weigh on some downstream firms. Global demand for energy storage was set to rise, driven by high oil prices and rapidly expanding artificial intelligence (AI) data centres, said Wang Ying, a managing director at the credit rating agency. “We believe that China’s leading energy storage cell manufacturers will be the bigger...
The West’s narrative of Chinese “overcapacity” is a double standard, said a former chief economist of the World Bank as he urged advanced economies to draw on “Eastern wisdom” rather than protectionism to navigate the rise of hi-tech competition. Justin Lin Yifu, a prominent advocate of Beijing’s industrial policy, dismissed claims that China’s auto-export surge was a sign of industrial imbalance. Speaking at Hong Kong Chu Hai College, Lin drew a contrast with Germany to expose a logical...
China's government agencies met Friday to address severe overcapacity in the solar power industry, proposing capacity control, price enforcement, and M&A measures to end the domestic price war. The country produces over 80% of global solar panel components but faces intense domestic competition labeled 'involution' and shrinking export opportunities due to US tariffs and EU supply chain diversification.
Industry leaders in China are urging the government to tighten project approvals to curb overcapacity, which they claim is squeezing profits and threatening the stability of the battery and solar sectors despite rising global demand.
