Chinese automakers are pushing past warnings from U.S. and European policymakers and accelerating global expansion strategies as their home market economy slumps.
Chinese automakers and their shippers have ordered a record number of car-carrying ships to send vehicles to overseas markets, Reuters reported Wednesday.
The investments in a blue water navy of car carriers come as European and U.S. policymakers – responding to alarms from their big employers – are warning China not to export its clean technology overcapacity problem to their markets.
Chinese officials profess to be shocked, shocked by charges that the world’s biggest auto market harbors too many unproductive auto and clean technology factories.
Plant closures have pushed China’s auto sector capacity utilization to 70%, a senior official of the China Association of Auto Manufacturers said. A top official of another industry trade group made similar comments. (A 70% capacity utilization rate is still less than most automakers consider ideal.)
Breakingviews writes that independent analysts say excess capacity in China’s EV and green energy sectors is real and here to stay.
Chinese automakers argue their success is down to hard work and innovation.
On Friday, Chinese EV startup brand Hyper said it has cracked the code on solid state batteries with longer range and faster charging than current technology. Hyper plans to bring the technology to market in two years – potentially beating Western rivals.
Smartphone maker Xiaomi’s connected, electric car looks like a hit. Xiaomi chose to make the smartphone on wheels Apple did not. Is that wrong?
Here’s another lesson from history: Trade barriers did not stop Toyota or Hyundai from becoming global players.
