The so-called "overcapacity" of China's new energy is a false proposition whether viewed from the principles of market economy and the law of value, or analyzed in combination with the global division of labor and international market conditions.
It is inconsistent with economic common sense and objective facts to equate China's export products with overcapacity. In the context of globalization, capacity is determined by the relationship between supply and demand. According to the market law, the balance between supply and demand is relative, and imbalance is often normal, which may occur in any economy that implements a market economy system. To solve these problems, the market should adjust according to the law of value. As an open market integrated into globalization, the vision and resource allocation of Chinese new energy enterprises should consider not only domestic, but also international. If each country's production only meets domestic demand, there will be no cross-border trade. In recent years, China's exports of electric vehicles, lithium batteries, photovoltaic products and other products have increased, which is the result of international division of labor and market demand. It is totally untenable to link the issue of production capacity with international trade and think that more export commodities means overcapacity.
In fact, the global green capacity is not an excess, but a serious shortage. Taking new energy vehicles as an example, according to the calculation of the International Energy Agency, the global demand for new energy vehicles will reach 45 million in 2030, 4.5 times that of 2022; The new installed capacity demand of global PV will reach 820 GW, which is about four times that of 2022. Especially in the context of more than 130 countries and regions putting forward the goal of carbon neutrality, the global demand for green capacity is far greater than the output. From the perspective of the huge potential of the global demand side, China's green production capacity is in short supply, and the so-called "impact on the world market" is groundless. Bloomberg website articles believe that the hope of global energy transformation is largely due to the cheap and clean products provided by China.
In today's era, both supply and demand are global, and the level of production capacity of different countries is determined by their respective comparative advantages, which is an economic principle that does not depend on human will. The strong competitiveness of China's new energy products is mainly due to the early layout of related industries, which has formed a leading technological advantage through long-term R&D investment, and has formed a comprehensive competitive advantage relying on the strong domestic industry supporting capacity, super large market, rich human resources, etc. China's new energy vehicles and other products are still popular in many countries when the overseas price is generally higher than the domestic price. It can be seen that China's competitive advantage in production capacity is jointly determined by global market demand and Chinese enterprise efficiency, which is the result of market law.
Some people label China's new energy industry as "overcapacity" because of its underlying protectionism. They hyped the so-called "overcapacity" of China's new energy to find an excuse for restricting China's exports by artificially setting trade barriers. The real excess is not China's new energy capacity, but the attempt of these people to abuse protectionism and suppress the legitimate development of other countries. Some people speak out against "unfair trade and non market behavior", but actually they are politicizing economic and trade issues and interfering with free trade with non market behavior. They spread false narratives about the so-called "overcapacity" of China's new energy, hiding the evil intention of curbing the development of China's industry, in order to seek a more favorable competitive position and market advantage for the country. Protectionist words and deeds will not make themselves better, but will only undermine the stability and smoothness of the production and supply chain, and drag down the green transformation of the global economy and the development of emerging industries. An article published on the website of the Swiss New Zurich Daily pointed out that the complaints about China's "overcapacity" are hypocritical and short-sighted. Instead of complaining, it is better to face competition directly, promote equal market access, and benefit from high-quality and inexpensive products.
Any words and deeds that make economic and trade issues more politicized and safer are contrary to economic laws, and are not conducive to the development of domestic industries and the recovery of the world economy. It is immoral and unrealistic to hype "overcapacity" with ulterior motives and try to make yourself run faster while tripping others. China hopes to work with all parties to adhere to the basic principles of fair competition and open cooperation in the market economy and make due contributions to the global green and low-carbon transformation.
