Clean technology is turning into the next global climate spat. The debate over China’s dominance is highly politicized, but there are ways forward.
“Overcapacity”, a geeky economic term, has recently become the new buzzword for international discussion around China’s solar and electric vehicle industries. It is also becoming one of the thorniest issues in China’s relations with other major economies.
Notably, the word was mentioned five times in the G7 Leaders Communiqué released last week, with the G7 countries framing it collectively as a global challenge.
It is a debate that was initially sparked by US Treasury Secretary Janet Yellen during her April visit to Beijing. According to her, China’s cleantech industry has excess capacities that cannot be absorbed domestically, leading to exports at depressed prices. And she stressed that this should be a concern not only for the US, but also for Europe and other emerging markets...
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Words by Yao Zhe, the global policy advisor for Greenpeace East Asia.
