Text/Liu Liang
Recently, some politicians and media in the United States and the West have frequently hyped up the so-called "overcapacity" theory of China's new energy. However, such a deliberate distortion of the facts cannot obscure the huge potential and attractiveness of China's new energy market. In the context of the era when global green development is increasingly becoming the main theme, more and more multinational car companies have increased their investment in the Chinese market and "voted" for the development prospects of China's new energy market with actions.
The "ulterior motives" of the United States and the West
Recently, people in the United States and the West have deliberately hyped up China's new energy "overcapacity theory" in the international public opinion field.
In fact, the concept is not new. Over the years, as China's economy continues to grow and develop, and a number of emerging industries in China have emerged in the world, some Western countries have begun to hype up various economic theories against China, and the "overcapacity theory" is one of them. In essence, this argument is aimed at protectionism, trying to influence and restrict the development and export of China's related industries in public opinion.
These arguments are often based on false accusations and biases. In discussions of China's new energy overcapacity, the United States and the West often define it as production capacity that exceeds domestic demand. This argument is undoubtedly contrary to common sense, imagine how the basis for trade between countries will exist if there is excess capacity in excess of a country's needs.
Some also argue that China's industrial advantage through subsidies and tax breaks has led to an influx of "cheap" new energy products into the global market, hurting other countries' economies. The fact is that industrial subsidies are a common practice in the world, and many countries, including the United States and Europe, have them, and even have more projects and greater intensity. Today, China's new energy industry has already entered the accelerated track of development through market competition.
Is China's new energy really "overcapacity"?
In recent years, China's new energy vehicle market has developed rapidly, with production and sales ranking first in the world for many years, and the number of new energy vehicle exports has reached a new high. Then, at this time, some people in the United States and the West began to be "anxious", believing that more export products means overcapacity.
However, simply equating product exports with "overcapacity" runs counter to the trend of globalization.
Under the high division of labor in the global economy, production capacity and demand are not limited to one country. Exports are the norm, such as 80% of American-made chips and German-made automobiles are used for export. If this logic is followed, one might ask, as the Swiss newspaper Neue Zürcher Zeitung: "Are Western exports to Asia overcapacity? If a country produces only for its own market, where does trade begin?"
In order to fill the "loophole" in this view, some have gone further and argued that China's new energy capacity also exceeds global demand. However, the fact is that the new energy industry is not overcapacity, but insufficient, especially high-quality production capacity is more scarce.
According to the International Energy Agency, the global demand for new energy vehicles will reach 45 million in 2030, 4.5 times that of 2022, and the global demand for new photovoltaic capacity will reach 820 GW, about four times that of 2022. Internationally, the demand for new energy products in developing countries has continued to grow due to the slow energy transition. Liao Min, Vice Minister of Finance, once stressed that the current production capacity is far from meeting the market demand, especially the potential demand for new energy products in many developing countries.
From a market perspective, an imbalance between supply and demand is often the norm. Even if there is overcapacity, there is a market mechanism to participate, and the law of reliable value is adjusted. In terms of supply and demand, China's export growth was also driven by global demand. Therefore, China's new energy products cannot simply be regarded as "cheap" products, let alone as damage to other countries' economies. On the contrary, these products provide more options and opportunities for the global market.
Zheng Yongnian, a professor at the Chinese University of Hong Kong (Shenzhen) and president of the Qianhai Institute of International Affairs, recently wrote an article pointing out that China's own development and values have created greater room for growth and a stable environment for the world. For example, in order to support global green development and fulfill its carbon neutrality commitment, China has fully invested in and cultivated the new energy industry, which not only contributes to the world's accelerated decarbonization of new energy products with lower costs and higher maturity, but also helps more countries create new industries and jobs.
International car companies have increased their investment in the Chinese market
"Voting with your feet" is the truest thing. The huge potential and sustainable development momentum of China's new energy market are attracting the attention of global car companies.
The relevant person in charge of Hyundai Motor Group emphasized that the new energy transformation in the automotive field has long become a social consensus. In the face of China, the world's largest new energy vehicle market, the Group has far-reaching expectations for the development of electrification in China. China's electric vehicle market will usher in rapid growth with the policy support of the new energy vehicle industry and the continuous recognition of technology and new energy by consumers, and the prospects of the Chinese market are optimistic. At the same time, in view of the layout of the new energy market, Hyundai Motor will continue to introduce more new models in the future to meet the needs of Chinese consumers. (Related reading: New energy vehicles are visiting, ushering in the critical moment of fighting "two forces")
More car companies emphasized the main theme of green development and cooperation. BMW Group Chairman Philip Zipzer recently said that green development is not a solitary path, and everyone needs to move forward side by side. As a leader in the sustainable development of the automotive industry, the BMW Group is currently working with more than 450 Chinese suppliers and more than 600 dealerships in China to achieve carbon reduction throughout the entire industry chain and actively promote the application of innovative technologies for the circular economy in the automotive industry.
The reporter further learned from BMW's relevant departments in China today that the BMW Group is making every effort to promote its product offensive in almost all core market segments in China. In 2024 alone, BMW will launch more than 20 new products under the BMW and MINI brands in the Chinese market.
Not only the above-mentioned international car companies, but also Volkswagen, Audi, Toyota, etc., have increased their investment in the field of new energy vehicles in China and worked together.
On April 11 this year, the Volkswagen Group announced that it will invest 2.5 billion euros to further expand its production and innovation center in Hefei. Audi FAW New Energy Automobile Co., Ltd., the brand's first production base for pure electric vehicles in China, is expected to start production by the end of 2024.
Toyota revealed that it will launch more new models that can meet the expectations of Chinese consumers in the future, facing China, the world's largest and most demanding automobile market.
"I don't see 'overcapacity', what I see is the huge demand for new energy vehicles in the global market. China will influence the global market much deeper than what we see today. Klaus Ziccola, a world-renowned car designer and vice president of Changan Automobile, said in an interview with the media.
Some of the materials are compiled from: CCTV Network, Xinhua News Agency, etc
Source: The country is a through train
Editor: Zhuge Ruixin
Editor-in-charge: Wei Xi