U.S. and China Address Overcapacity in Solar and Battery Industries in Climate Talks

Credit: aboodi vesakaran/Pexels

Senior officials from the United States and China engaged in two days of bilateral meetings focused on climate change, addressing issues ranging from overcapacity in and battery manufacturing to trade tensions in key sectors such as steel and coal power.

During the first formal bilateral meetings between U.S. climate change diplomat John Podesta and his Chinese counterpart Liu Zhenmin on May 8 and 9 in Washington, discussions revolved around collaborative efforts ahead of the upcoming COP29 climate summit in Azerbaijan. Topics included cooperation on methane reduction, deforestation, and strategies to mitigate overcapacity in clean energy manufacturing.

A senior State Department official highlighted the U.S.'s concerns regarding China's impact on global markets, stating, “The U.S. made clear that China's flooding of global markets with cheap solar panels and coal undercuts clean energy manufacturing in other countries.”

Liu's visit coincided with new trade petitions from solar companies, urging the Biden administration to address unfair competition by imposing penalties on solar components originating from Chinese factories in Southeast Asian countries.

Reports also surfaced regarding the U.S. considering tariffs on Chinese vehicles, prompting warnings from Liu against trade protectionism. In a speech in China, Liu cautioned, “The countercurrents of protectionism and unilateralism have further extended the climate change governance gap.”

The meeting marked the first formal dialogue between the world's two largest greenhouse gas emitters since the conclusion of in Dubai. Notably, it provided insight into the diplomatic tone under the new envoys, contrasting with the amicable relationship between their predecessors, former Secretary of State and Chinese climate envoy .

Both countries affirmed a commitment to develop new national climate strategies aligned with the Paris Agreement goal of limiting global warming to 1.5°C above pre-industrial levels by February 2025. Additionally, they announced plans to host a high-level meeting on sub-national cooperation in California and a joint summit on methane and non-CO2 gases at COP29.

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