The European Union's Concern Over China's Overcapacity Issues

The European Union is deeply concerned about China's overcapacity issues, which arise from heavy state subsidies in key industries like electric vehicles, solar panels, and wind turbines. China's low domestic demand and reliance on exports due to weak consumption exacerbate this problem. The EU market's relative openness makes it a likely destination for the excess Chinese goods, creating tension over potential negative impacts on the local industries and the need to address subsidy competitions.