In recent months, U.S. outlets have raised alarms over supposed "overcapacity" in China's renewables—claiming factories are churning out panels, batteries and electric cars that the world cannot absorb. But a deep dive into international trade data suggests a more balanced reality: China's green energy giants are simply seizing global demand.
Case in point: in 2023 China's "new trio" of new-energy vehicles (NEVs), lithium-ion batteries and photovoltaic products topped 1 trillion RMB (about $139 billion) in exports—a jump of nearly 30 percent. Far from dumping unwanted goods, these exports reflect a globalized economy where specialization and comparative advantage drive growth.
Consider export dependency: in 2023, exports made up just 19 percent of China's GDP, climbing modestly to 20 percent in 2024. That's lower than Germany or France, which often export more than half of their output. Facts over fearmongering: export share is data-driven, not perception-driven.
On plant floors, capacity utilization tells a similar story. A rate below 70 percent flags excess supply, but China's NEV makers routinely run above 80 percent. Industry leader BYD has reported utilization over 99.5 percent for four straight years, while battery maker CATL reached roughly 76 percent last year.
So what's really happening? Rather than flooding markets with surplus stock, China is ramping up to meet both domestic and global green-tech demand. Far from burdening markets, these exports help drive down costs, accelerate clean-energy adoption and boost competitiveness worldwide.
For entrepreneurs, investors and young global citizens, the takeaway is clear: data-driven insights matter. Before accepting narratives spun on headlines, dig into the numbers. In a world wired together by trade, overcapacity is often just a misread of growth—and China's green energy sector is proof.
Reference(s):
cgtn.com
