While addressing concerns about overcapacity in China’s new-energy sector, Xu Lin, chairman of the China-US Green Fund, explained that the excess production is a result of serving the international market and competition dynamics, not a deliberate decision to export overcapacity. He emphasized the competitiveness of Chinese products, leading to accusations of overcapacity from the West.
Xu discussed recent tariff hikes on Chinese EVs and carmakers by the US and EU, attributing these actions to competition pressure. He highlighted the need for China to restructure its subsidy system to avoid overcapacity and international trade disputes. Xu also stressed the importance of diversifying production locations to enhance supply-chain security.
Chinese companies should not be the only players out there in the new-energy sector
Xu urged for greater international cooperation in green-energy innovation and emphasized the potential for collaboration between China and the US. He advocated for a stable institutional framework for the green sector to combat climate change effectively.