Post by account_disabled on Feb 22, 2024 2:59:13 GMT -5
We'll send you a Daily Digest email with the latest business and finance news from China every morning. China should do more to stimulate domestic consumption, European companies have said, saying huge investment in electric vehicle capacity has caused “understandable” concern in the EU. The EU last week announced an anti-subsidy investigation over fears that Chinese exports could swamp its auto industry as they previously did with its solar panel sector. Chinese authorities have emphasized boosting manufacturing and exports, particularly of electric vehicles, rather than supporting consumers as a way to boost its pandemic-damaged economy. “Due to excess capacity outside Europe, the European solar panel market was more or less destroyed,” said Jens Eskelund, president of the EU Chamber of Commerce in China. "So I think it's understandable that in Europe there is some concern about what's happening," Eskelund said in the publication of the chamber's annual position paper on China.
Why do we see this rapid expansion in production, which is significantly . surpassing any . . Current expected demand in the market? The chamber called for “demand-side policies” and a “more Pakistan Phone Number predictable policy landscape” that would support domestic consumption by ensuring consumers did not have to save as much to protect themselves against sudden changes in government direction. China's growing expertise in electric vehicles is expected to lead to a "seismic shift" in the industry, according to UBS analysts. They expect Chinese brands to account for one in five cars sold in Europe by 2030, compared to just 3 percent last year, to the detriment of established brands. China's battery and electric vehicle makers are following a playbook that foreign executives say has hurt other foreign industries: excessive investment fueled by subsidies and support from local governments that results in excess capacity that is then unleashed.
Global markets. The average utilization rate of Chinese lithium-ion battery factories was 45 percent last year and has fallen further in the first half of this year, according to CRU, a research group. The country's current pipeline of new projects would result in annual capacity by 2030 far exceeding that needed to convert the entire automobile fleet to battery electric power. Analysts estimate that the country's auto industry is already suffering from production that far exceeds demand. EU Trade Commissioner Valdis Dombrovskis is scheduled to arrive in China on Friday for talks that looked difficult even before the anti-subsidy investigation was announced. While Eskelund warned that the European investigation had to follow fair and transparent principles and that the outcome could not be anticipated, he said there were signs that China's huge trade imbalances were being driven in part by industrial policy.
Why do we see this rapid expansion in production, which is significantly . surpassing any . . Current expected demand in the market? The chamber called for “demand-side policies” and a “more Pakistan Phone Number predictable policy landscape” that would support domestic consumption by ensuring consumers did not have to save as much to protect themselves against sudden changes in government direction. China's growing expertise in electric vehicles is expected to lead to a "seismic shift" in the industry, according to UBS analysts. They expect Chinese brands to account for one in five cars sold in Europe by 2030, compared to just 3 percent last year, to the detriment of established brands. China's battery and electric vehicle makers are following a playbook that foreign executives say has hurt other foreign industries: excessive investment fueled by subsidies and support from local governments that results in excess capacity that is then unleashed.
Global markets. The average utilization rate of Chinese lithium-ion battery factories was 45 percent last year and has fallen further in the first half of this year, according to CRU, a research group. The country's current pipeline of new projects would result in annual capacity by 2030 far exceeding that needed to convert the entire automobile fleet to battery electric power. Analysts estimate that the country's auto industry is already suffering from production that far exceeds demand. EU Trade Commissioner Valdis Dombrovskis is scheduled to arrive in China on Friday for talks that looked difficult even before the anti-subsidy investigation was announced. While Eskelund warned that the European investigation had to follow fair and transparent principles and that the outcome could not be anticipated, he said there were signs that China's huge trade imbalances were being driven in part by industrial policy.