China Faces Overcapacity and Trade Tensions in Major Clean Energy Exports

• China's $139B exports of EVs, batteries, and solar cells face overcapacity concerns and anxiety from US, EU • Legal action and tariffs against cheap Chinese exports could set back critical segment of economy • Expanding domestic demand difficult and takes time, effort and reforms • China could ease overcapacity by setting up factories in US, Europe or Southeast Asia • Producers can sell to India or non-aligned countries to offset any dips in Western demand