Trend Chinese capacity expansion and low-price offensives intensify global price competition

Summary

Across several of Korea's key industries, KIET finds Chinese capacity growth and aggressive pricing reshaping competition in 2026. Chinese automakers are strengthening their supply influence through global market expansion and local production. In textiles, rising synthetic feedstock and freight costs force price increases, while China's continued low-price offensive deepens losses on commodity products. In displays, LCD supply is increasingly concentrated in China, and competition with China in small and medium OLED panels is set to become fiercer. In batteries, Chinese producers are expanding capacity in Europe and strengthening their position with LFP chemistry, deepening a China-led supply structure there. Chinese oversupply also limits how far petrochemical producers can pass higher costs on to prices.