China’s “overcapacity” issue stems from a reduction in local consumption due to the pandemic, rather than a deliberate attempt to undercut Western competitors, according to Marc Otte de Ruyt, co-chair of the Europe-Asia Centre in Brussels.
China has accelerated development in its new energy sector, causing friction with the US and the EU, who have both intensified measures on Chinese goods. De Ruyt highlighted the EU’s current sensitive position amid global instability and the risk of protectionist measures as elections approach.
Amid divisions over Ukraine policy in Europe, China’s recent diplomatic efforts in the region have raised concerns about its intentions. The EU remains wary of China’s claim of neutrality in the conflict, while also seeking cooperation against Russia.