‘Don’t jump to conclusions’: China needs balance amid US, EU overcapacity fears
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China should be mindful of risks from overcapacity and prudently formulate industrial policies to guide enterprises amid Beijing’s hi-tech push. The European Union and United States have accused China of exporting overcapacity, particularly with electric vehicles. Former government adviser Jia Kang says policymakers should have the foresight to make good predictions for supply and demand. He suggests that Beijing should improve communication with the United States and EU to settle disputes through cooperation and competition. China’s new quality productive forces strategy aims to pivot economic growth and exports to a tech-led growth trajectory. China shipped more than 1 trillion yuan worth of “new three” products in 2023. The State Council-backed Economic Daily argues that China’s “quality capacity” is providing impetus to the world economy and the green transition. Jia Kang defends the role of industrial policies but stresses the need for judiciousness when designing policies.