China’s green capacity boosts global 'green welfare'
Opinion
At the recently concluded 135th China Import and Export Fair in Guangzhou, China's 'new three' export products - namely new energy vehicles (NEV), lithium batteries and solar cells - were widely popular among global buyers. However, in the meantime, some Western countries blamed China for “exporting over capacity of its new energy industry” to gain unfair advantages over the competition. Such an allegation of “over-capacity” is simply a false proposition.When the Western countries export their products to other parts of the world, they attribute it to their comparative advantages in the free international trade. So, why should the export of China’s new energy products be labelled as “exporting over capacity”? If such logic could stand by itself, should we also claim that the West is exporting over capacity in terms of the airlines produced by them which occupy a world market share of over 90%?
The fact is that, from a global perspective, new energy production is far from over-capacity, but rather in serious shortage. According to the International Energy Agency, global demand for NEVs will reach 45 million units by 2030, 4.5 times that of 2022, and the new demand for global photovoltaic (PV) installed capacity will reach 820 gigawatt (GW), about four times that of 2022. It’s crystal clear that the market demand in this regard far exceeds the production capability of the world today.
It’s because of China’s mega domestic market, complete industrial system, abundant human resources and massive investment in research, development and innovation that new energy products in China have gained a competitive edge, featuring good quality and low price. The increase in China’s export of the 'new three' products is the result of full market competition, which conforms with the law of market economy.
What China provides is the high-quality and scarce capacity that meets the global need for sustainable development. As the relevant report of the International Renewable Energy Agency has indicated, the average kilowatt-hour cost of global wind power and PV power generation has decreased by more than 60% and 80% respectively over the past decade, largely due to China’s innovation, manufacturing and engineering capabilities.
Shared aspiration
As climate change is a global challenge, developing the new energy industry and achieving a green, low-carbon transition is the shared aspiration of all countries. It’s no doubt that China’s new energy industry has made great contribution to global emission reductions. Since the announcement of the 'dual carbon goals' in 2020, that is, to achieve the goal of reaching carbon peaking by 2030 and carbon neutrality by 2060, China has unwaveringly fulfilled its commitments, accelerating the transformation of its energy structure and promoting the leapfrog development of renewable energy.
According to a report by the International Energy Agency, the global newly installed renewable energy capacity in 2023 was 510 million kilowatts, and China contributed more than half of that, significantly boosting the global growth of renewable energy generation. Moreover, China’s wind and PV products have been exported to over 200 countries and regions worldwide, helping many developing countries access clean, reliable and affordable energy.
In 2022, China’s renewable energy power generation was equivalent to reducing domestic carbon dioxide emissions by approximately 2.26 billion tonnes, and its export of wind and PV products has reduced carbon dioxide emissions in other countries by about 573 million tonnes, totalling a reduction of over 2.8 billion tonnes - or about 41% of the global carbon reduction from renewable energy during the same period.
China’s new energy technologies provide crucial support for the global green, low-carbon transition. After years of development, China has achieved global leadership in several new energy technologies and equipment manufacturing levels, establishing the world’s largest clean power supply system.
From connecting the world’s first 16 megawatt offshore wind turbine to the grid to the commercial operation of the world’s first fourth-generation nuclear power plant, from new batteries that allow for a 1 000-kilometre range on a single charge to smart cockpits integrated with advanced artificial intelligence models, China’s new energy industry - with its innovative advantages and superior quality - has contributed wisdom and strength to the global energy transition.
**Zhao Weiping is the Chinese ambassador to Namibia.