Assistant Professor of Engineering Management and Systems Engineering John Helveston published an op-ed in The Wire China titled “The Problem With “Overcapacity” in China’s Automotive Industry.” In the op-ed, he and his co-authors explore the causes behind concerns of overcapacity and argue these concerns may be based on misconceptions.
Here is an excerpt from the article: “The U.S., EU, and Canada have recently imposed steep tariffs on imported Chinese-made electric vehicles (EVs). The justification for these measures is familiar and alarmist: China’s EV industry is producing more cars than it can sell domestically, and this “overcapacity” will flood international markets with low-priced vehicles, overwhelming and ultimately collapsing domestic auto industries.”
Read the full article on The Wire China.