The world's three largest economies - the USA, China and Germany - are wrestling with the issue of overcapacity. Because cheap Chinese products are flooding the world market.
Germany is trying to “reduce risks and reduce our vulnerability” But the reduction of dependencies has so far only been partially successful. The EU Commission recently started an examination of subsidies for Chinese solar manufacturers, electric cars and wind turbines. The suspicion: These could be illegal in order to give China an advantage. Ultimately, there would be a risk of punitive tariffs. A double-edged sword, because a real trade war could follow.. Since 2011, China has created 300,000 jobs in solar module production. The People's Republic currently dominates more than 80 percent of the global solar module market. The auto industry, especially in the U.S., is also under pressure due to overcapacity due to Chinese overproduction. The world’s two largest economies, the USA and China, are also grappling with the problem.