The Problem With “Overcapacity” in China’s Automotive Industry
The debate over China’s auto exports is bedeviled by narrow definitions and mis-measurement that risks encouraging the wrong policy response.
Rows of cars parked at a Geely auto plant in Hangzhou, Zhejiang. Credit: ChinaImages via Depositphotos
The U.S., EU, and Canada have recently imposed steep tariffs on imported Chinese-made electric vehicles (EVs). The justification for these measures is familiar and alarmist: China’s EV industry is producing more cars than it can sell domestically, and this “overcapacity” will flood international markets with low-priced vehicles, overwhelming and ultimately collapsing domestic auto industries. Sounds pretty scary, right?
An excerpt from a fact sheet covering President Biden's tarif
Exclusive longform investigative journalism, Q&As, news and analysis, and data on Chinese business elites and corporations. We publish China scoops you won't find anywhere else.
A weekly curated reading list on China from Andrew Peaple.
A daily roundup of China finance, business and economics headlines.
We offer discounts for groups, institutions and students. Go to our Subscriptions page for details.
The former Biden official and China scholar makes the case for the previous administration's approach and discusses why Beijing is content to watch the U.S. now dismantle its sources of strength
Navigate China's Business Landscape with Confidence.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OKPrivacy policy
