China 'overcapacity' claim masks Western protectionism in green tech
Western accusations of Chinese 'overcapacity' in green energy and steel are a smokescreen for protectionism, argues a recent opinion piece. The claim that China's output distorts markets ignores data: China's ferrous metals capacity utilisation was 78.1% in 2024 and 79.7% last year, within EU healthy ranges. US officials arbitrarily label any output exceeding domestic consumption as overcapacity, a standard that would condemn Germany, which exported 76% of its 4.15 million cars last year. The EU imports 42.2% of its cosmetics from China. Protectionism will slow the green energy transition and make future technologies unaffordable for those most in need.
Key facts
- China's ferrous metals capacity utilisation was 78.1% in 2024 and 79.7% last year.
- Germany produced 4.15 million cars in 2023 and exported 3.17 million (over 76%).
- 42.2% of cosmetics imported into China originate in the EU.
- Western officials claim China's massive steel output is proof of distortion.
- US uses an arbitrary metric: output exceeding domestic consumption is overcapacity.
- Protectionism will slow the green energy transition.
- Protectionism makes future technologies unaffordable for those most in need.
- The piece argues Western accusations are a smokescreen for protectionism.
Entities
Institutions
- European Union
- China
Locations
- China
- United States
- Germany
- European Union