‘Overcapacity’ talk reflects a West irked by China’s industrial rise

A debate is occurring regarding China's "overcapacity" in clean energy production. While Europe advocates for faster and cheaper clean energy deployment, it also expresses concern when China manufactures solar panels, wind turbines, batteries, and electric vehicles that facilitate this. A working paper by the Brussels-based think tank Bruegel suggests that China's industrial policies have led to its global leadership in renewable technologies, but also to significant overcapacity, declining prices, and reduced profitability. China's vast production capacity has enabled rapid domestic renewable energy deployment and increased exports due to attractive pricing. The article highlights that the perception of China's production scale varies, being viewed as a threat by some economies, a climate opportunity by others, and a combination of both by some.