Chinese economy

Policy brief

published: 24.09.2025

China can decarbonise the world – but even that won’t fix its overcapacity problem

Senior Fellow Alicia Garcia-Herrero and Haoxin Mu showcase how China is on track to meet global green-tech demand but needs to pivot from manufacturing to infrastructure.

About authors

Alicia Garcia Herrero

Chief Economist for Asia Pacific at Natixis, Senior Fellow at Bruegel, Non-resident Senior Follow at the East Asian Institute, Adjunct Professor at the Hong Kong University of Science and Technology

Economist specialized in monetary and financial issues in emerging markets, banking crises and resolution strategies, financial development