🚀 Is \"overcapacity\" the new buzzword for protectionism? Western governments and media have lately been buzzing about China's booming new energy industry, raising eyebrows over supposed \"overcapacity.\" But is there more to the story?
They claim that China's production of clean energy products—think solar panels, electric vehicles (EVs), and lithium-ion batteries—is exceeding not just China's own needs, but also flooding global markets, pushing down prices and allegedly hurting workers and manufacturers back home.
But hold on a second! U.S. economist Nicholas Lardy isn't buying it. In a chat with Xinhua, Lardy from the Peterson Institute for International Economics called out this \"overcapacity\" concern as a potential smokescreen for something more sinister: protectionism.
\"This overcapacity idea is that you shouldn't produce more than you can sell domestically,\" Lardy pointed out. \"If that was carried to an extreme, that would mean no trade globally.\" 🌎
He didn't mince words: \"So Boeing should cut its production? U.S. soybean farmers should limit their production to what can be sold within the United States?\" Lardy emphasized that this line of thinking could spell disaster for economies everywhere.
Meanwhile, according to the International Energy Agency's Global EV Outlook, the future's looking electric! ⚡ They predict global sales of EVs will hit a whopping 45 million units by 2030, triple the numbers from 2023. China's EV sales in 2023 were around 9.5 million, with exports at 1.05 million—still behind countries like Germany, Japan, and South Korea.
Chinese Foreign Ministry spokesperson Lin Jian weighed in, stating that using \"overcapacity\" to justify protectionism is a lose-lose. \"Those who use overcapacity to justify protectionism have nothing to gain and will only destabilize global industrial and supply chains, harm emerging sectors, and hinder the world's climate response and green transition,\" Lin said.
So, what's the takeaway? 🌍💡 Maybe it's time to look past the \"overcapacity\" smokescreen and focus on collaboration, innovation, and a greener future for all!
Reference(s):
Overcapacity as excuse for protectionism is damaging: U.S. economist
cgtn.com
