Experts: 'Overcapacity' claim to damage global industrial development

2024-05-03 07:24:21China Daily Editor : Mo Honge ECNS App Download

Implementing protectionist policies to restrict so-called overcapacity, which limits market competition and protects backward production capacity, will cause serious damage to global industrial development and the home country, Wenhui Daily reported on April 21, quoting experts.

Under the guise of overcapacity, countries such as the U.S. are strengthening restrictions on China's exports of high-quality and efficient products which, to some extent, is the protection of their own backward production capacity through non-market means, said Li Wei, the dean and researcher at the Graduate School of Shanghai Academy of Social Sciences.

When challenged by new entrants under market economy conditions, monopolistic enterprises in industrial sectors often emphasize that new entrants will bring overproduction capacity and then use non-market means to restrict overproduction capacity to prevent new entrants and maintain their monopoly status.

International industrial development experience shows that protectionist policies, which undermine market competition and the principle of open cooperation, will weaken efforts for technological innovation and efficiency improvement due to the lack of market competition pressure, gradually eroding the competitiveness of domestic industries, according to Li.

Meanwhile, these protectionist policies that restrict the import of high-quality and efficient products harm the interests of consumers in countries such as the U.S. by depriving them of the opportunity to share the achievements of China's green low-carbon industrial development, Li said.

China's export of high-quality and efficient products to meet the rapidly expanding global green low-carbon market demand is a significant contribution to international industrial development.

The current demand in international green low-carbon industries is witnessing a rapid expansion.

The global demand for new energy vehicles will reach 45 million units by 2030, more than four times that of 2022; the global photovoltaic newly installed capacity demand will reach 820 gigawatts, about four times that of 2022, according to the International Energy Agency.

The current production capacity falls far short of market demand, especially with numerous developing countries having significant potential demand for new energy products, said Li.

On one hand, China's emerging "new trio" represents the new quality productive forces of today's China and the world. It exemplifies China's new contribution to human development in the new era, said Zhang Xuekui, deputy director and researcher at the Institute of Journalism of the Shanghai Academy of Social Sciences.

On the other hand, the green low-carbon transformation and development path represented by China's "new trio", as well as the changes in production and lifestyle promoted by China to achieve the "dual-carbon" goal, are making China a global exemplar in bearing historical and future greenhouse gas emissions and responsibility allocation, shouldering the global responsibilities and obligations to address climate change fairly.

China is actively promoting green low-carbon technological innovation and industrial development, not only to meet its own green development needs but also to make positive contributions to global green sustainable development, Zhang said.

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