Critics from Europe and America have accused China of \"overcapacity\" in its burgeoning new energy manufacturing sector. However, these criticisms lack a solid scientific foundation and overlook the strong global demand for China's new energy products.
Experts argue that the surge in demand for new energy solutions, driven by the escalating challenges of climate change, far outpaces current manufacturing capacities. In the realm of new energy vehicles (NEVs), Bloomberg New Energy Finance reports that to adhere to the Paris Agreement's 2°C temperature increase cap, the global NEV fleet must expand dramatically to 355 million units by 2030, with annual sales surpassing 74 million units.
In contrast, the International Energy Agency (IEA) indicates that as of 2023, the global NEV inventory stands at approximately 42 million units, with annual sales around 13.6 million units. To bridge this gap, the NEV industry must achieve an annual sales growth rate exceeding 27%, highlighting the imperative for continuous expansion of global production capabilities.
Therefore, rather than concerns about overcapacity, the real challenge lies in scaling up manufacturing to meet the immense and growing demand for new energy technologies worldwide.
Reference(s):
cgtn.com
