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Targeted regulations won’t fix structural overcapacity

With the EU and US both apparently moving closer to imposing new trade restrictions on EVs and possibly on other "new energy" products from China, China's state media this week made a concerted effort to push back against the idea that there is any problem with overcapacity in these sectors. But the industry regulator does seem concerned - it has just published draft rules designed to squeeze out low-end battery production. Previous efforts to address sectoral overcapacity suggest much stricter measures would be needed to have a major impact.

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