China recognizes the world is changing and adapts quickly, more so than the U.S., where party seems to matter more than country on both sides of the aisle. This article is full of facts and statistics we should know. So, if you like analysis, you'll enjoy the read. Recently, the EU asked for a slowdown of Chinese EVs, and they said no. There goes car manufacturing in Europe. Go figure, and no one in leadership at the time in the EU will do anything about it.
We can never trust China, and sometimes it feels like Trump is too lovey-dovey with Xi, but that is his style, and that is okay as long as he doesn’t lose sight of who they really are. Politics is always a game like chess: some play well, and some don’t, i.e., Joe Biden. All IMO.
Claude, an AI assistant made by Anthropic, wrote the following summary based on this report from MERICS, the Mercator Institute for China Studies.
“Survival of the Fiercest: How Involution Helps China Dominate Green Tech
A MERICS report, October 2026
China now leads the world in green technology. In 2025, Chinese firms supplied at least three-quarters of the solar panels, wind turbines and electric vehicles sold worldwide. But behind that success is a paradox the Chinese call “involution”: competition so fierce that everyone works harder and gains nothing.
The report looked at three sectors. Solar was hit hardest. Prices fell by more than half, leading firms lost money, and more than 150 companies went bankrupt. Electric vehicles saw a long price war. Giants like BYD stayed profitable, but most smaller makers still lose money. Wind turbines suffered least. They are complex and hard to copy, and manufacturers signed a pact to stop selling below cost.
Beijing says it wants to end this cutthroat competition, but it hasn’t changed the system behind it. Local governments still prop up money-losing firms to protect jobs and growth.
Squeezed at home, Chinese companies are turning abroad, and Europe is their biggest market. Their prices there run thirty to fifty percent below European rivals.
The authors conclude that cheap Chinese technology may speed up Europe’s energy transition, but it also deepens Europe’s dependence on China. They urge European governments and businesses to act together, and soon.”