Santeri Viinamäki
According to the publication, China is constructing considerably more battery factories than is required to satisfy local demand for electric vehicles and grid energy storage.
The newspaper notes that this is an indication of "huge" government subsidies and "unchecked" bank financing, which are anticipated to support the "expansion of Chinese manufacturers" internationally.
China's regions are competing with one another to use government subsidies and establish themselves as battery production hubs in anticipation of a future increase in demand.
The Ft predicts that by 2027, there will be roughly four times as much capacity as needed. According to the article, it's possible that more businesses may start exporting, raising geopolitical tensions between China and the West.
source: ft.com
The newspaper notes that this is an indication of "huge" government subsidies and "unchecked" bank financing, which are anticipated to support the "expansion of Chinese manufacturers" internationally.
China's regions are competing with one another to use government subsidies and establish themselves as battery production hubs in anticipation of a future increase in demand.
The Ft predicts that by 2027, there will be roughly four times as much capacity as needed. According to the article, it's possible that more businesses may start exporting, raising geopolitical tensions between China and the West.
source: ft.com