Why accusations of Chinese NEV industry ”overcapacity” are groundless

Some US and Western politicians and media outlets have recently claimed "overcapacity" in China's industrial sector. They have focused on the growth of Chinese manufacturing in new green industries like electric vehicles, lithium-ion batteries, and solar panels. In 2023, China became the world's largest auto exporter, with a significant increase in sales of new energy vehicles. What's behind China's NEV success? Why does the "overcapacity" narrative conflict with the global demand for new energy vehicles and basic economic principles?