Interview: Production capacity imbalances are not "overcapacity", says business insider-Xinhua

Interview: Production capacity imbalances are not "overcapacity", says business insider

Source: Xinhua| 2024-05-09 23:56:30|Editor: huaxia

LONDON, May 9 (Xinhua) -- Production capacity imbalances between countries are geographical differences in competitiveness, and it is misleading to call them "overcapacity", senior business expert Wu Kegang told Xinhua in a recent interview.

From a global perspective, "overcapacity" in electric vehicles (EV) is not happening, said Wu, a former China adviser to the British Chambers of Commerce, in response to recent hype over China's "overcapacity" in new energy vehicles.

"Until every petrol engine vehicle is off the road, the world needs more and more EVs," said Wu.

Based in the United Kingdom (UK), Wu is an independent adviser on China-Britain business development and partnerships.

Demand for electric vehicles in Western countries may have been hampered by a reduction in subsidies, and a recent walk-back on the deadlines for phasing out petrol-powered vehicles, said Wu.

In September 2023, UK Prime Minister Rishi Sunak pushed back the ban on the sale of new petrol and diesel cars across the country from 2030 to 2035.

"China's ability to produce EVs at lower prices could be a help to the world in speeding up the phasing out of petrol-powered vehicles, while saving taxpayers subsidies," said Wu.

He suggested that more Chinese companies should consider deepening cooperation, and building EV manufacturing closer to the UK and European Union markets.