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China's New Energy Sector Overcapacity Presents Global Diversification Opportunities

Energy

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Published on 19th November 2025, 1:48 AM

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Author

Simar Singh | Whalesbook News Team

Overview

China is facing significant overcapacity in its new energy sector, particularly in batteries, electric vehicles (EVs), and solar equipment. To address this 'involution', Chinese regulators are implementing stricter quality, safety, and R&D standards. This situation creates opportunities for global economies to diversify their supply chains away from China and potentially negotiate for concessions on technology export controls, while leading Chinese firms may seek foreign investments to maintain market share.