In a move to dispel assertions from certain Western nations, Chinese Premier Li Qiang emphasized that China’s burgeoning new energy industry owes its success to market competition and self-driven innovation, not government subsidies.
During a meeting with German Chancellor Olaf Scholz in Beijing on Tuesday, Premier Li addressed concerns over alleged “overcapacity” in China’s new energy sectors. He highlighted that China’s advantages stem from its ability to foster a competitive market environment, which has enabled rapid advancements in new energy technologies.
“The production capacity of different countries is determined by their comparative advantages,” Li stated. “As long as countries strengthen cooperation, they can achieve common development.”
Data Contradicts Overcapacity Claims
Recent data analyses challenge the notion of overcapacity in China’s emerging industries. The National Information Center of China predicts that the penetration rate of new energy vehicles (NEVs) in China will surge from 35.2 percent in 2023 to 60 percent by 2033, indicating robust domestic demand.
On an international scale, the International Energy Agency (IEA) forecasts that global electric vehicle (EV) sales will reach 45 million units by 2030, a 4.5-fold increase from 2022 figures. Additionally, global solar photovoltaic installations are expected to expand nearly fourfold to 820 gigawatts by 2030.
Jin Xiandong, an official from the National Development and Reform Commission, China’s top economic planning agency, remarked during a press conference on Wednesday that a moderate surplus of production capacity facilitates market competition and is a common phenomenon worldwide. “Linking production capacity issues with international trade and claiming that a surge of exported goods indicates ‘overcapacity’ is untenable,” Jin asserted.
Contributing to Global Green Development
Premier Li underscored China’s commitment to global environmental goals, stating that the country’s high-quality production capacity in new energy industries will make significant contributions to global green development. By leveraging its market-driven innovations, China aims to collaborate with international partners to promote sustainable growth and address global environmental challenges.
Reference(s):
cgtn.com
