China Counters Allegations of Over-Capacity in EVs and Lithium Batteries
China's Premier Li Qiang defends the country's EV and lithium battery production, claiming that it meets domestic demand while also contributing to global supply. The United States and the European Union have accused Chinese enterprises of receiving improper subsidies and potentially flooding their markets with low-cost green technologies. China warns Brussels about establishing a new front in the trade conflict and launches an anti-dumping investigation against EU pork imports.
Speaking at the World Economic Forum in Dalian, Li defended China's manufacturing of sophisticated electric vehicles (EVs), lithium-ion batteries, and solar technologies, claiming that they not only meet domestic demand but also contribute to global supply.
Li underlined that the rapid growth of China's emerging sectors is due to the country's distinct competitive advantages. He said that China's early investment in green technologies enabled them to create these products at a low cost. Li's statements came ahead of technical negotiations between China and the European Union over the implementation of tariffs on Chinese-made EVs imported into the EU.
In May, the United States implemented hefty tariff hikes on a variety of Chinese goods, including EV batteries. This has exacerbated tensions between China and the West, with Brussels aligning its trade policy with that of the US. The risk is that China's production-focused economic strategy will flood the market with low-cost items, affecting domestic sectors.
China has warned Brussels that it risks escalating the existing trade battle with Beijing. In response to the EU's tariff decision, China launched an anti-dumping investigation against EU pork imports. Li suggested that China's constant emergence of economies of scale efficiently reduces innovation costs, adding to the country's new industries' great competitiveness.
China claims that its investments in green technology are justified, while the West's efforts are wrong. Chinese analysts have long denied claims of overcapacity and unfair subsidies, arguing that as the economy recovers, supply will match demand. Li voiced confidence in China's economic growth, noting that the country's economy has been on an upward trend and is projected to expand steadily in the second quarter. He also stated that China is confident and capable of meeting its full-year economic growth objective of roughly 5%.
China's Premier Li Qiang defends China's production of EVs and lithium batteries, stating they meet domestic demand and enrich the global supply.
The United States and the European Union have accused Chinese firms of benefiting from unfair subsidies and potentially flooding their markets with cheap green technologies.
China warns Brussels of opening up a new front in the trade war and initiates an anti-dumping probe into EU pork imports.
Source: REUTERS