During a recent press conference in Beijing, Premier Li Qiang addressed concerns about China's alleged excess capacity. He emphasized the importance of viewing supply and demand from a global perspective, highlighting that each country specializes in certain industries based on their comparative advantages.
Li Qiang also stressed that common development can be achieved through international cooperation, arguing against the simplistic notion of determining which country has excess capacity.
The narrative of \"excess capacity in China\" has gained attention, particularly following U.S. Treasury Secretary Janet Yellen's recent visit to a solar cell manufacturing plant in Georgia, USA. Yellen raised concerns about excess capacity in solar panels, electric cars, and associated batteries during her discussions in China.
However, the electric car market in China remains fiercely competitive, with over 50 companies, including Tesla, vying for market share. High competition does not necessarily indicate excess capacity.
In support of this perspective, Xiaomi's recent entry into the automobile market with the SU7 model garnered nearly 90,000 orders within hours of its debut event. This strong demand challenges the notion of excess capacity, highlighting a robust market for new automotive products.
Reference(s):
cgtn.com
