Ruler Su Jin Sheng|" China's export of green products hurts the economies of other countries"?

Recently, some people in the United States have hyped up the argument of "overcapacity" in China's new energy, claiming that "China's 'new three' green overcapacity, represented by new energy vehicles, lithium batteries and photovoltaic products, has caused market distortion and damaged the economies of other countries through a large number of exports in order to digest the excess capacity." ”

What are the facts? We might as well first walk into the Canton Fair in China and take a look at this vane for observing international trade.

From April 15th to 19th, the first phase of the Canton Fair with the theme of "advanced manufacturing" was successfully held, in which the new energy vehicle and smart travel exhibition area was crowded and bustling.

"New energy vehicles have formed a trend in the world, and China is a global leader in the field of new energy vehicles, so we hope to purchase more new energy vehicle products here. Eliton, a buyer from Europe, said.

"The whole world is interested in China's green technology. Steven Selikov, an American importer, said bluntly that he would be open to finding business opportunities in China.

As of April 19, 125,440 overseas buyers from 212 countries and regions around the world participated in the conference offline, an increase of 23.2% over the same period of the previous session. Among them, there were 22,694 European and American buyers, accounting for 18.1%.

On the one hand, some people in relevant countries claim that "China's green overcapacity hurts the economies of other countries", and on the other hand, "the whole world is interested in China's green technology". The contrast between the two is stark, and the truth is self-evident.

Overcapacity refers to the fact that the supply in the market is greater than the demand. But in fact, from the perspective of global development trends, with the intensification of the impact of climate change, countries are actively exploring the path of green and low-carbon development, and more than 130 countries have announced that they will achieve net-zero emissions by the middle of the 21st century, and green trade will become a new engine for global trade growth in the future. According to the International Energy Agency, the global demand for new energy vehicles will reach 45 million in 2030, more than four times that of 2022; Global PV demand will reach 820 GW, about four times that of 2022.

In other words, the current green production capacity is not excessive, but a serious shortage, where is the "excess"?

Let's look at the laws of economics. According to the theory of comparative advantage, if a country is able to produce a product at a lower cost, other countries should not erect tariff barriers, but should import that product while exporting its own comparative advantage.

Today's China, the development of green industries, the expansion of green trade, is in line with the general trend of global development of the choice, photovoltaic, lithium batteries, new energy vehicles as the representative of the global market has indeed formed a certain competitive advantage, which will help countries around the world to implement the United Nations 2030 Agenda for Sustainable Development and climate change "Paris Agreement" goals.

China's green contribution to the world economy is real. Against the backdrop of sluggish world economic growth and high inflation, China has given full play to the advantages of a complete industrial chain to provide the world with green products with good quality, high efficiency and fair prices, represented by the "New Three Things", which not only alleviates global inflationary pressure, but also provides strong support for the stability of global industrial and supply chains. China's green production capacity is a high-quality and scarce production capacity for global green development.

Let's take a look at a set of data: in 2023, the global renewable energy capacity will be 510 million kilowatts, and China will contribute more than half; China's high-quality clean energy products are exported to more than 200 countries and regions around the world; China has also cooperated with more than 100 countries and regions in green energy projects, effectively solving the problems of difficult and expensive electricity consumption in relevant countries and regions. According to the International Renewable Energy Agency (IRENA), the average LCOE of wind and photovoltaic power projects has fallen by more than 60% and 80% respectively over the past decade, thanks in large part to Chinese innovation, Chinese manufacturing and Chinese engineering.

Oli Hongchi, a partner at Grant Thornton, said: "Chinese products bring great opportunities to the global market, not threats. The whole world is sharing the market dividends brought by China's green development. ”

Peter Fischer, chief economist of Switzerland's "Neue Zürcher Zeitung", recently pointed out in an article that "the West's complaints about China's 'overcapacity' are actually hypocritical and short-sighted." "Consumers will be happy if the West can buy affordable PV and wind energy, or if innovative electric vehicles from China can prompt European manufacturers to accelerate the pace of innovation." ”

In the face of many facts, the fallacy of China's new energy "overcapacity" is naturally self-defeating. What needs to be vigilant is that in the face of China's independent innovation achievements in China's new energy industry, which has a comparative advantage, some people in the United States are not thinking about taking what they need and learning from each other's strengths, but trying to find ways to beat sticks and buckle hats, and the anti-globalization and trade protectionism behind them are becoming more and more intense, which is worrying.

Over the years, from the "China threat theory" to the "China impact theory" and then to the "overcapacity theory", some people in relevant countries have continued to construct variants of the "China threat narrative", and these arguments are without exception to politicize economic and trade issues, impose trade restrictions, and distort market order, which is not conducive to improving production efficiency or to domestic and global consumers.

International experts have pointed out that the "overcapacity theory" provides a pretext for protectionism, which is potentially dangerous for global trade. Its purpose is to curb the scientific and technological development and industrial upgrading of developing countries represented by China, and to maintain the global economic hegemony of the countries concerned by improper means. This is destined to be unpopular.

Openness brings progress, while closure inevitably lags behind. This year's "Report on the Work of the Government" once again stressed that "we must deepen reform and opening up with greater determination and intensity." A sustained and more open China will surely bring more development opportunities to the world. Only when all countries in the world go hand in hand can we sing the harmonious movement of common development for all mankind.

Source: People's Daily client

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