The debate over China's industrial overcapacity is heating up, with significant implications for the global green transition. Recently, European Commission President Ursula von der Leyen stated that \"the world cannot absorb China's surplus production.\" This assertion has sparked discussions among experts and policymakers alike.
Contrary to these claims, Remeredzai Joseph Kuhudzai, in a commentary for CleanTechnica, challenges the notion of irreversible overcapacity in China. Kuhudzai emphasizes that many regions around the world still grapple with energy and mobility poverty, suggesting that what is perceived as \"overcapacity\" could be a valuable asset in addressing these critical needs.
Kuhudzai points out that the so-called excess production capacity in China could play a pivotal role in the green transition of other parts of the globe. \"If the EU is not too keen to have new energy vehicles, solar and battery storage products, and other things from China at levels they consider 'flooding,' there is a big opportunity for any capacity in China that may have been deemed 'spare capacity' to be aggressively redirected to make a real impact in other parts of the world, such as Asia, Central and South America, as well as Africa,\" he explains.
This perspective highlights a potential pathway for leveraging China's manufacturing strengths to support sustainable development goals internationally. By redirecting excess industrial capacity, the global community can accelerate the adoption of renewable energy technologies and enhance mobility solutions in regions that need them the most.
As the world continues to navigate the challenges of climate change and sustainable development, the collaboration between major industrial players like China and emerging markets becomes increasingly crucial. Kuhudzai’s insights suggest that instead of viewing China's overcapacity as a problem, it could be reimagined as a resource for driving meaningful progress towards a greener future.
Reference(s):
There is no 'overcapacity' that cannot be absorbed by the world
cgtn.com
