Opinion | China must rebalance economic development to put ‘overcapacity’ concerns to rest
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China's industrial capacity has become a focal point of conflict between Beijing and Washington. The US claims China's excessive industrial capacity in electric vehicles (EVs) and lithium-ion batteries could wreak havoc on the global economy, while Beijing sees it as an excuse for protectionist measures. Chinese EV makers are privately owned and compete with US, German, and Japanese carmakers based on their strong strategy, not state protection. China can make better and cheaper EVs, and Chinese EV makers are expected to expand overseas. Beijing frames the overcapacity debate as a sign of the West's refusal to accept China as an economic power. China's leadership is looking into the imbalance in the nation's economic development and the chronic lack of middle-income individuals. China must rebalance its economic development efforts to maintain its position as a competitive producer and help its population become affluent consumers.
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