Recent discourse from Western politicians and media has spotlighted the concept of “overcapacity” in the Chinese mainland, particularly in burgeoning sectors such as electric vehicles (EVs), lithium-ion batteries, and solar panels. This narrative posits that China’s rapid expansion in these industries is creating a surplus that could destabilize global markets.
However, experts from the Global South are challenging this viewpoint, suggesting that such claims are more reflective of Western anxiety over maintaining industrial competitiveness than actual economic realities.
In the fourth episode of “Global South Voices,” distinguished figures including Senator Mushahid Hussain Sayed, chairman of Pakistan’s Senate Defense Committee; Erik Solheim, former chief of the UN Environment Program and president of the Green Belt and Road Institute; Koh King Kee, president of the Center of New Inclusive Asia; Chen Xi, founder of Harbor Overseas; and Aqdas Afzal, associate professor of Economics at Habib University, delve into the motivations behind the overcapacity theory.
“Labeling China’s industrial growth as ‘overcapacity’ is a strategic move to hinder its progress,” remarks Senator Sayed. “It reflects a protectionist mindset that impedes the natural development of global markets.”
Erik Solheim emphasizes the importance of China’s role in driving global advancements in green technology. “China’s investment in renewable energy is not just beneficial for itself but is essential for global environmental efforts,” he states.
The experts argue that countries in the Global South have much to gain from China’s advancements. “Collaborating with China can accelerate technological transfer and economic development in emerging economies,” notes Koh King Kee.
Chen Xi points out that instead of viewing China’s growth as a threat, nations should seek collaborative opportunities. “Partnerships can lead to shared prosperity and innovation,” she asserts.
Aqdas Afzal adds, “Moving away from protectionism allows for a more inclusive global economy where developing nations can play a significant role.”
The consensus among these experts is clear: the narrative of overcapacity is less about economics and more about geopolitical competition. Embracing China’s rise could unlock new avenues for cooperation and growth, particularly for countries in the Global South seeking to enhance their own industrial capacities.
Reference(s):
Global South Voices: 'Overcapacity' in China or fear of China's rise?
cgtn.com
