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Accusing China of overcapacity a sign of protectionism: Foreign Ministry spokesperson

2024-04-25 Editor : Mo Honge ECNS App Download

(ECNS) -- Some Western countries have lately been accusing China of “overcapacity,” which is baseless hype and a sign of protectionism, Chinese Foreign Ministry spokesperson Wang Wenbin said at a press conference on Wednesday.

Wang took the new energy sector as an example.

According to estimates by the International Energy Agency, based on the announced carbon neutrality targets, by 2030, global demand for new energy vehicles would reach 45 million, 4.5 times that of 2022, while global demand for new photovoltaic installations would also soar, he said.

He added that the challenge facing the world is not overcapacity, but a severe shortage of capacity in the new energy sector.

China’s green technology and products, especially the growth of its new energy industry, can meet the energy crisis and respond to climate change, and will make an important contribution to the global green and low-carbon transition, the spokesperson said.

He also refuted claims that the rapid growth of China’s new energy industry is due to subsidies.

China’s new energy products are competitive because this sector started out early and has kept investing in its R&D, hence boasting a leading edge in technology. Combined with China’s vast range of supporting industries, mega-size market and rich human resources, that leading edge has become an integrated competitiveness, he said. 

It is determined by the laws of economics and market factors, he noted.

Bloomberg analysis shows that in the electric vehicle (EV) sector, the capacity usage rates of the majority of China’s leading auto exporters are considered normal; the ratio of exports to production is far lower than other car-producing nations such as Germany, Japan, and the ROK; and Chinese companies aren’t dumping EVs on the global market, since export prices for these cars reflect the laws of the market.

To limit the export of China’s new energy products, including electric vehicles, would be a loss to all. The world doesn’t want less of China’s capacity, but more funding and products to speed up energy transition and reduce poverty, he noted.

He further stressed that China stands by its basic national policy of opening up and is ready to work with all parties to uphold fair competition and benefit from cooperation. 

"We hope relevant countries will stay open, observe the principles of market economy and international trade rules, and provide a fair, transparent, open, and non-discriminatory environment for Chinese businesses," said the spokesperson.

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