Signs of Chinese saturation in energy transition
China and the rest of the Asia-Pacific region are the backbone of the energy transition, or at least of the supply chains to meet the new demand that will result from the energy transition. Chinese exports of batteries, electric cars and solar panels hit record levels last year, underscoring its dominance in key green industries and triggering a global slump in prices. Overseas sales of the products, which Beijing has identified as vital to future economic growth, topped $150 billion, according to Australia's Griffith Asia Institute. But the dollar figures will fall by 2024, according to a Bloomberg analysis of Chinese trade data, largely because of falling prices rather than lower shipments. There are three dynamics behind these numbers, along with other points related to the energy transition: 1) the energy transition is closer to the South-South supply chains led by China, 2) Western companies have a long way to go to compete, and protectionism may not be the smartest solu...