China's new energy sector is making significant strides, propelling both domestic development and the global green transition. Industries such as electric vehicles (EVs), solar products, and lithium batteries have seen rapid growth and continuous upgrades, meeting high-quality development needs at home while catering to the global market.
Despite these achievements, the U.S. and Europe have raised concerns about China's industrial production capacity, labeling it as 'overcapacity.' However, Chinese officials argue that this notion contradicts economic principles. Jin Xiandong, an official of the National Development and Reform Commission, emphasized that a moderate surplus in production can foster market competition and drive innovation.
A review by Xinhua News Agency highlighted that Chinese businesses operate in an open market, balancing demand from both domestic and international sources—a standard practice in the global economy. Nicholas Lardy from the Peterson Institute for International Economics echoed this sentiment, questioning the validity of the overcapacity argument.
Global demand for new energy products is soaring. The International Energy Agency (IEA) projects that by 2030, the demand for new energy vehicles will triple from 2023 levels, and solar installations will quadruple. Despite this, current production capacities are insufficient to meet the burgeoning needs, especially in developing countries.
Chinese companies are not merely increasing output; they are enhancing competitiveness through technological innovation and efficient supply chains. Reports indicate that Chinese EVs are becoming more attractive globally, not through price cuts, but because of their advanced technology and strong market presence.
As the world pushes towards a green and low-carbon future, China's sustained growth in the new energy sector is crucial. By providing high-quality production capacity and driving down costs worldwide, China is playing a pivotal role in the global effort to combat climate change.
Reference(s):
China's new energy sector far from 'overcapacity,' facing huge demand
cgtn.com
