AI Vibes: China's new energy industry aligns with green shift, economic globalization, benefiting world

(People's Daily Online) 09:23, July 11, 2024

Global climate change is outpacing expectations, with a severe shortage of green products worldwide rather than an excess supply, according to recent data.

2023 was the hottest year on record globally, and the increasing frequency of extreme weather events, such as prolonged heatwaves, droughts, heavy rainfall, and floods, is threatening global economic and social development, as well as human safety.

The Intergovernmental Panel on Climate Change (IPCC) predicted in 2021 that if the global economy continues to rely on fossil fuels for growth, the average global sea level could rise by 0.63 to 1.6 meters by 2100, compared to the average level observed from 1995 to 2014.

Over half of the world's green and low-carbon technologies remain in the early stages of development, highlighting a substantial shortage of affordable green solutions despite high demand for low-carbon development.

However, China has independently developed feasible technological solutions for deep decarbonization in the energy and transportation sectors. The country's widespread adoption of these technologies has reduced the cost of new energy products, providing a hopeful sign in the global battle against climate change.

The global PV module supply chain, in which China plays a leading role, saved U.S. installers $24 billion and German installers $7 billion from 2008 to 2020, according to a 2022 article in Nature.

However, PV module prices are projected to be 20 to 30 percent higher by 2030 if countries switch to domestic production. Such a shift would severely impact the global response to climate change.

China has consistently embraced open cooperation and shared development opportunities with other countries in its new energy industry.

In 2018, China removed foreign ownership limits for new energy vehicle manufacturing, leading global automakers such as Tesla, Volkswagen, BMW, and Toyota to invest in electric vehicle production in China.

Foreign car companies held a combined market share of 14.2 percent in China's new energy passenger vehicle market in 2023, according to a report by GAST Strategy Consulting.

Renewable energy projects in China saw steady growth in foreign contracts in 2021 and 2022, with an annual growth rate of 13 percent.

In the first three quarters of 2023, Chinese companies signed investment contracts worth $3.8 billion for overseas renewable energy projects.

China imports numerous new energy vehicles from BMW, Audi, and Porsche, along with high-end electric vehicle components, including lighting products, brake systems, tires, and shock absorbers.

Chinese exports have also included significant contributions from foreign-funded enterprises, with Tesla alone accounting for 28.6 percent of China's new energy electric vehicle exports in 2023.

Industrial competition between countries are inevitable. However, adopting unilateralism and protectionism under the pretext of "overcapacity" in China's new energy industry to restrict the export of Chinese products will only hinder global progress in the new energy sector, impede technological advancements, and slow down the worldwide transition towards green and low-carbon development.

China remains committed to promoting the new energy industry and international cooperation. It will continue to create more opportunities for shared development among nations and contribute fresh momentum to the collective efforts in addressing climate change and enhancing the overall well-being of humanity.

(Web editor: Tian Yi, Wu Chengliang)


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