Tag

Overcapacity

All articles tagged with #overcapacity

world25 days ago•3 min saved

Europe Braces for a Second China Shock at the G7

At the G7 summit, Europe fears a new 'China shock' from surging Chinese exports and overproduction that threaten core industries, prompting discussions of harsher tariffs, local-content rules, and an EU 'overcapacity' instrument. France’s presidency has made global economic imbalances a priority as Brussels weighs measures to shield European-made sectors, amid China’s record trade surplus and the shift that all EU members reported deficits with China in 2025.

via Axios|

#china #europe #g7

world1 month ago•3 min saved

Berlin Signals Backing for Tougher EU-China Trade Defenses

Germany has opened the door to stronger EU trade defenses against China to curb overcapacity and protect European industry, signaling Berlin’s support for the European Commission’s push to curb surging Chinese goods despite the challenge of uniting all member states on a common stance.

via politico.eu|

#eu-china-relations #germany #overcapacity

world1 month ago•7 min saved

EU shifts to de-risk China amid mounting tensions and trade risks

The European Commission signaled a strategic rethink on China, emphasizing de-risking rather than decoupling as tensions rise and the EU weighs stronger trade-defence tools (tariffs, investigations) and new instruments to curb overcapacity. Internal splits, notably in Germany and Spain, complicate policy shifts even as Brussels prepares for possible moves at the June European Council, amid threats of retaliation from Beijing and pressure to shield key industries from cheap Chinese imports.

via Euronews.com|

#de-risking #eu-china-relations #overcapacity

technology2 months ago•2 min saved

Iran War Triggers a Global Solar Surge, Boosting China’s Export Engine

Despite oil disruptions from the US-Iran war, a surge in China’s solar exports—68 GW in March—drives a global solar boom, with 55 countries setting all-time records and Africa and Asia showing strong demand; the piece notes the irony of boosting renewables and China while Trump has opposed both, and it raises questions about China’s solar overcapacity and whether current demand can absorb it.

via Futurism|

#china #overcapacity #renewables

world4 months ago•3 min saved

Germany pushes for a fair trade reset with China to curb ballooning deficit

German Chancellor Friedrich Merz urged a fair rebalance of Germany’s trade with China to shrink a €90 billion 2025 deficit driven by Chinese overcapacity, calling for transparency, level competition and rule-based trade; he traveled with a business delegation, noted potential Airbus orders, and pressed China to influence Moscow to end Russia’s aggression in Ukraine.

via politico.eu|

#airbus #germany-china #merz

economy5 months ago•13 min saved

China’s Growth Gamble: Innovation, Exports, and a Slow Consumption Lift

Beijing’s post-property-collapse strategy centers on innovation and high-end manufacturing to achieve “high-quality” growth, but domestic consumption remains weak (about 40% of GDP in 2024), and the social safety net is underfunded amid an aging population. With deficits rising and tax revenue slipping despite growth, China relies on exports and industrial upgrading while retaining old, labor-intensive sectors. If demand doesn’t pick up, overcapacity could depress profits and public finances, potentially hurting both China and its trading partners even as China’s share of global manufacturing climbs and sparks tensions with other economies.

via Foreign Affairs|

#china-economy #consumption-led-growth #economy

markets5 months ago•37 min saved

Silver Rally Tightens the Grip on Cash-Strapped Solar Makers

A surge in silver has raised costs for solar panels (silver now makes up about 29% of panel costs), prompting price hikes and faster substitution with copper as solar makers confront overcapacity and persistent losses.

via Bloomberg.com|

#copper-substitution #losses #markets

business9 months ago•9 min saved

China's Electric Vehicle Market Faces Price Wars and Industry Shakeup

The Chinese electric vehicle industry is experiencing a brutal price war driven by overcapacity and intense competition, leading to numerous bankruptcies like Ji Yue and squeezing profit margins, while the government attempts measures to curb destructive practices and stabilize the market, though experts believe significant consolidation and reform are necessary for long-term stability.

via CNN|

#business #chinese-electric-vehicles #government-regulation

economy10 months ago•4 min saved

China's Anti-Involution Drive: A New Era for Market Competition and Investment

China is experiencing a trend called 'involution,' characterized by intense and often destructive price wars across sectors like electric vehicles, solar, and food delivery, driven by overcapacity and hyper-competition, which threaten economic stability and lead to diminishing returns and profits.

via Reuters|

#china #competition #economy

business1 year ago•4 min saved

China’s Solar Overcapacity: A Double-Edged Sword for Industry Profitability

Chinese solar manufacturers face a significant overcapacity issue due to aggressive investments, leading to falling prices and profits. While this glut has caused financial strain domestically, experts suggest that leveraging this excess capacity for global renewable deployment could help meet climate goals and boost China's soft power. The industry is expected to stabilize as production constraints are implemented, but the overcapacity may persist, presenting both challenges and opportunities for China's role in global clean energy efforts.

via Financial Times|

#business #china #global-climate

energy2 years ago•2 min saved

"China's Solar Boom Overwhelms Power Grid"

China has produced an excess of solar panels, leading to overcapacity issues both domestically and internationally. This has resulted in calls from the US and EU for Beijing to control production, raising the possibility of a trade war. Domestically, China is facing challenges with storage and transmission of the excess energy, prompting a reduction in price support and fewer installations. The situation has led to layoffs in the industry and calls for mergers and acquisitions to manage capacity. The US has responded by increasing tariffs on Chinese solar imports.

via Business Insider|

#china #energy #overcapacity

economics2 years ago•8 min saved

"Yellen Addresses China's Overcapacity Myth and Export Game"

The East Asian export model, despite its arduous nature, has been successful due to the diligence and self-sacrifice of the Japanese people and the managerial expertise of organizations like Japan's Ministry of International Trade and Industry. The Lucas paradox, where capital does not flow from rich countries to poor as predicted by classical economics, has been a challenge for developing economies. However, with China's rise as the world's largest economy, its "overcapacity" is crucial for the development of the Global South, as it allows for the flow of capital and goods to developing economies, resolving the Lucas paradox.

via Asia Times|

#china #development-economics #east-asian-export-model

international-trade2 years ago•0 min saved

"Yellen Warns of Unprecedented Response to China's Overcapacity Threat"

Treasury Secretary Janet Yellen stated that the US is open to considering all options, including additional tariffs, in response to China's overcapacity in manufacturing, which has led to an influx of cheap goods into the US market. Yellen emphasized that this issue is a concern for multiple countries, including Europe, Japan, India, Mexico, and Brazil.

via Bloomberg|

#global-trade #international-trade #janet-yellen

international-relations2 years ago•2 min saved

"Yellen and von der Leyen Unite Against China's Overcapacity"

European Commission President Ursula von der Leyen and U.S. Treasury Secretary Janet Yellen have both called for a tough stance on China's perceived unfair trade practices, particularly regarding overcapacity in green energy products. This comes ahead of German Chancellor Olaf Scholz's trip to Beijing, where he is urged to address the issue. The U.S. and its allies have raised concerns about Chinese overcapacity undercutting domestic businesses, while China denies the claims and emphasizes its green technology industry's innovations. Despite resistance from the EU, there are discussions about potential tariffs and trade restrictions on Chinese goods.

via CNBC|

#china #eu #international-relations

economics2 years ago•4 min saved

"Yellen's China Visit: Addressing Economic Challenges and US Ties"

U.S. Treasury Secretary Janet Yellen expressed concerns about the global economic impact of China's excess manufacturing capacity, particularly in sectors like electric vehicles and solar panels, during her visit to China. She emphasized the need for China to address overcapacity and its effects on other economies, while also highlighting areas of cooperation between the U.S. and China. Yellen's meetings with Chinese officials come amid escalating tensions and discussions about trade issues, with both sides expressing concerns about each other's trade practices.

via Reuters|

#china #economic-growth #economics