China's EV 'overcapacity' accusations debunked as data reveals market realities

The capacity usage rates of the majority of China's leading auto exporters in the electric vehicle market (EV) are considered normal, according to a recent Bloomberg analysis which has helped shed light on actual market realities.

This comes as some Western politicians and media outlets claimed that Chinese EV manufacturers' rapid development was driven by subsidies, saying that excess production capacity is impacting the world market. But China's current production capacity is far from meeting market demand.

China Passenger Car Association data shows that from 2019 to 2023, China's car exports accounted for only 15.9 percent of domestic production. The ratio of exports to production is far lower than in other car-producing nations such as Germany, Japan and South Korea.

Overcapacity essentially happens because there is not enough market demand for the products being produced.

However, in the case of EVs, the reality is just the opposite.

Almost 14 million new electric cars were registered globally in 2023, and electric car sales in 2023 were 3.5 million higher than in 2022, a 35 percent year-on-year increase, according to a report published by the International Energy Agency (IEA) on Tuesday, indicating that growth remains robust as electric car markets mature.

According to the China Automobile Dealers Association, China's vehicle inventory alert index, which reflects the inventory pressure on automobile dealers, declined 5.8 percentage points month on month in March this year. The IEA report notes that sales of EVs in China have remained robust. It projects that sales are set to grow by almost 25 percent in 2024 compared to last year, reaching around 10 million.

On April 23, a commentary in the Swiss newspaper Neue Zürcher Zeitung (New Journal of Zürich) argued that the West's complaints about China's "overcapacity" are both hypocritical and shortsighted. Instead of hyping the "Chinese threat," the Western industrialized countries would do better to face up to the competition, benefit from good and affordable products and push for equal market access in exchange for more Chinese green energy products entering the European market, the article suggests.

China's EV 'overcapacity' accusations debunked as data reveals market realities

Facts have proved that wherever the United States fans the flames, there is suffering, said Chen Binhua, a spokesman for the State Council Taiwan Affairs Office, on Wednesday, denouncing the U.S. malicious intention on the Taiwan question.

Chen made the remarks in response to a question about the Taiwan-related statement made by John Aquilino, the recently retired commander of the U.S. Indo-Pacific Command.

Taiwan is an inalienable part of China's territory and the Taiwan question is entirely China's internal affair that brooks no external interference, said Chen.

The anti-China forces in the United States, who previously hyped up "Ukraine today, Taiwan tomorrow", and now tout "Taiwan can take a cue from Israel", are conveying a very dangerous signal, said Chen.

Facts have proved that wherever the United States fans the flames, there is suffering. They are trying to replicate this old trick on Taiwan, which again exposes their malicious intention of taking advantage of Taiwan, undermining Taiwan's interests, and even sacrificing Taiwan, he said.

Wherever US fans flames, there is suffering: spokesman