Heiwai Tang: 'Europe has the market that Chinese companies want'

In recent years, China's industrial policy has led to massive overcapacity in key sectors such as electric cars, solar cells, and robotics. The reason for this is a centrally controlled subsidy model under which local governments want to build up their own “champions” – often all in the same industries, as Hong Kong economist Heiwai Tang explains.

Last updated: 28. July 2025