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Goldman Sees China Oversupply Easing — Just Not for EVs
- Overcapacity likely to remain for EVs and steel, report says
- Many large economies complaining about China’s production
Electric vehicles bound for shipment in Taicang, China.
Source: Bloomberg
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China’s overflow of goods abroad is set to change course in the next few years, according to Goldman Sachs analysts, though relief isn’t likely for electric vehicles and steel.
Chinese manufacturers are producing more than the world can absorb in several industries, Goldman analysts wrote in a report to clients Tuesday. While some sectors, including lithium batteries and solar components, may be about to wind down production to better suit demand, overcapacity is likely to remain for EVs and steel. These have prompted the most pushback recently from other large economies.