The ongoing debate about China's \"overcapacity\" in the new three industries—electric vehicles, lithium batteries, and solar panels—is gaining attention in Western circles. Critics argue that China is flooding the global market with cheap products, potentially distorting market rules. However, a closer look reveals that China's advancements in these sectors are pivotal to global economic recovery and sustainable development.
Contrary to accusations, China's manufacturing capacity in the new energy sectors aligns with increasing global demand for eco-friendly products. According to the International Energy Agency's report \"Net Zero by 2050,\" achieving net zero emissions requires a massive deployment of clean energy technologies. By 2030, solar photovoltaics are projected to reach 630 gigawatts annually, and electric vehicles could account for over 60 percent of global car sales. China's production, therefore, remains essential in meeting these escalating needs.
Moreover, China's ability to produce affordable green products enhances living standards worldwide. Historically, increasing manufacturing capacity has led to reduced costs and greater accessibility of goods, a trend evident in the rise of products like smartphones and electric vehicles. This industrialization process not only boosts economic output but also empowers consumers with better options.
From a supply-side perspective, China's new energy industries stimulate growth in related sectors. The electric vehicle industry, for instance, supports various industries including automotive electronics, lithium batteries, and fuel-cell power systems. This interconnectedness fosters innovation and creates new opportunities globally, contributing positively to economic recovery.
While short-term supply-demand mismatches may occur, especially with rapid technological advancements, these fluctuations often pave the way for further industry development and integration. Overall, China's new three industries are not undermining global competition but are integral to fostering sustainable economic growth worldwide.
Reference(s):
China's 'new three' industries: Powering global economic recovery
cgtn.com
