After years of innovative development, China’s new energy industry has gained some leading advantages internationally. Some people’s anxiety about the development of China’s new energy industry has increased as a result, hyping up the so-called “overcapacity” of China’s new energy, attempting to repeat the old trick and use protectionist measures to curb and suppress the development of China’s industry.
The development of China’s new energy industry relies on genuine skills, is achieved through sufficient market competition, and is a reflection of China’s practical implementation of the concept of ecological civilization and fulfillment of its obligations to address climate change. China adheres to the concept of green development and vigorously promotes the construction of ecological civilization, creating unprecedented opportunities for the development of the new energy industry. The Chinese government is committed to creating a favorable innovation and business environment, providing a stage for new energy enterprises from various countries to showcase their strengths and develop rapidly. China not only has numerous local new energy vehicle brands, but also attracts foreign new energy vehicle brands to invest. Tesla’s Shanghai super factory has become Tesla’s main export center globally, with cars produced here selling well in Asia Pacific, Europe and other regions. Accompanied by unprecedented opportunities is ample market competition. In order to gain an advantage in the Chinese market, new energy enterprises have continuously increased their investment in innovation, thereby enhancing their global competitiveness. This is the logic behind the rapid development of China’s new energy industry.
From a market perspective, the amount of production capacity is determined by the supply-demand relationship. Supply and demand balance is relative, while imbalance is common. Moderate production exceeding demand is conducive to full competition and survival of the fittest. The most convincing data is whether China’s new energy production capacity is surplus. In 2023, the production and sales of new energy vehicles in China were 9.587 million and 9.495 million respectively, with a difference of 92000 units between production and sales, which is less than 1% of the total production. As reported on the website of the Brazilian magazine “Forum”, considering the large supply and demand, this small gap is very normal. “Obviously, there is no overcapacity.”. French entrepreneur Arnold Bertrand also pointed out that there is no sign of overcapacity in China’s new energy sector based on the analysis of three key indicators: capacity utilization, inventory level, and profit margin. In 2023, the domestic sales of new energy vehicles in China reached 8.292 million units, a year-on-year increase of 33.6%, with domestic sales accounting for 87%. The claim that China only focuses on stimulating supply rather than simultaneously driving demand is completely untrue. In 2023, China exported 1.203 million new energy vehicles, with exports accounting for a much lower proportion of production than some developed countries, making it impossible for them to dump their surplus overseas.
China’s green production capacity enriches global supply, promotes global green and low-carbon transformation, alleviates global inflationary pressures, and improves the well-being of consumers in various countries. Some people disregard the facts and spread claims that China’s overcapacity in new energy will ultimately impact the world market, and that product exports will disrupt the global trading system. The real purpose is to find an excuse for violating the principle of fair competition in the market and to provide cover for its implementation of protectionist economic policies. This is a common tactic to politicize and securitize economic and trade issues.
Politicizing economic and trade issues such as production capacity goes against the trend of economic globalization and goes against economic laws, which is not conducive to the interests of domestic consumers and industrial development, but also to the stability of the world economy
Post time: Jun-08-2024