The Chinese government has, via grants and low-interest-rate loans, historically encouraged its industries to operate with large capacity models. In 2023, the USD700bn of new loans at below the prevailing interest rate led to an increase in production of EVs, batteries and other products integral to the green transition. However, the slowdown in the domestic economy has since pushed such industries to cater to overseas demand, the biggest beneficiary being Build Your Dreams Company (BYD), which has expanded its market share in the battery EV (BEV) category in the EU. Both the US and the EU, therefore, have reasons to limit the growth of Chinese industry.