Resilient EV exports, overcapacity in solar: checking in on China’s key innovation sectors

China calls electric vehicles, lithium-ion batteries and solar equipment its “new three.” These sectors are becoming an ever more important part of China’s export mix, and shipments are rising in dollar terms. But at the individual industry level, performance is more mixed.

For EV makers enjoying export success, such as BYD, our right-hand chart shows how value per unit exported has held relatively steady even as competition increased.

For solar equipment, the situation is quite different, though China continues to dominate the global industry. Average prices have been falling due to overcapacity, competition from India and US restrictions on Chinese imports. The recent upturn is also notable, however. The Middle East conflict is bolstering the case for renewables, and the end of an export tax rebate led customers to front-load their orders.

CEIC users can click through for more charts measuring how China’s firms are performing relative to international competition, and compare different export markets (Europe, in particular, is becoming less important).