In Depth: How China Can Tackle Global Challenges to Expansion in Key Emerging Sectors

Amid mounting concerns about overcapacity in China’s industries, the country is grappling with the delicate task of promoting growth while ensuring sustainability in key emerging sectors such as new energy vehicles, power batteries and photovoltaic products.

China’s strategy to mitigate overcapacity through exports is facing resistance, particularly in Europe and the United States. Recent moves include the European Commission's anti-subsidy probe launched in October and targeting Chinese electric vehicle (EV) manufacturers such as BYD Co. Ltd., Zhejiang Geely Holding Group Co. Ltd., and SAIC Motor Corp. Ltd. Similarly, the U.S. has enacted stringent policies against Chinese EVs and batteries.