China points draft pointers to rein in lithium battery business
by AFP Workers Writers
Beijing (AFP) Could 9, 2024
China has launched draft pointers aimed toward reining within the nation’s lithium battery business, which has been in Western crosshairs over fears subsidised overproduction might flood international markets with cut-price exports.
Lithium-ion batteries are a type of rechargeable vitality storage utilized in all the pieces from electrical automobiles to scooters, laptops and motorised wheelchairs.
China is the world’s largest lithium battery market, accounting for some 57 % of world demand in 2022, in accordance with the Economist Intelligence Unit.
The nation’s exports have additionally risen sharply in recent times, together with a 33 % on-year leap in 2023, in accordance with state media experiences.
Pointers issued by the Ministry of Business and Info Expertise on Wednesday — which won’t be legally binding and are as a substitute aimed toward “encouraging and guiding” the sector — confused that lithium battery firms should keep away from “initiatives that purely increase capability”.
They need to as a substitute “strengthen technical innovation, increase product high quality and decrease manufacturing prices”, the doc mentioned.
The rules additionally urge corporations towards constructing manufacturing services on protected farmland or ecologically essential areas.
Present factories in protected areas ought to be shut down or “strictly management their scale and step by step transfer away”, in accordance with the doc.
The ministry additionally referred to as on firms to obey nationwide office security legal guidelines and adjust to present product requirements.
Overseas officers have warned that with Chinese language authorities assist creating extra manufacturing capability than international markets can soak up, a flood of low-cost exports in key sectors together with renewable vitality and lithium batteries might harm industries elsewhere.
Beijing has hit again at Western fears, with Chinese language President Xi Jinping this week telling European leaders the “so-called ‘drawback of China’s overcapacity’ doesn’t exist both from the angle of comparative benefit or in gentle of world demand.”
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