April 23, 2024

A number of Western governments and media outlets have highlighted issues related to "overcapacity" in China's new energy industry in recent months, claiming it as a matter of great concern for domestic companies and markets.

They say that China's clean energy products, including solar power, new energy vehicles (NEVs) and lithium-ion batteries, exceed China's domestic demand and what the global market can bear, thus depressing market prices and hurting workers and manufacturers in their countries.

However, according to U.S. economist Nicholas Lardy, the West's overcapacity argument risks being an excuse for protectionism and may hinder every country's economic growth eventually.

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