Photo: Xinhua
Robots work at the assembly workshop of Chinese automaker Seres Group in the new Liangjiang area of southwest China's Chongqing Municipality, April 25, 2024. With the growing demand for clean energy solutions to combat climate change, the global situation suggests an urgent need for expanded manufacturing capacity rather than a surplus.
BEIJING, May 19 (Xinhua) -- The specter of a "sour grapes" mentality looms when looking at additional U.S. tariffs on Chinese green products, including electric cars and solar panels, and accusations of "overcapacity" in these sectors.
The US call for China to curb its booming industry begs the question: If we label the export of 12 % electric vehicles made in China as overcapacity, then what about Germany, Japan and the United States, which export 80, 50 and 25 % of their cars, respectively?
Contrary to the claims of overcapacity, the reality in the new energy vehicle sector actually shows a lack of capacity. Forecasts from the International Energy Agency (IEA) suggest that by 2030, global demand for new energy vehicles will triple last year's levels to reach 45 million vehicles, with battery demand soaring to 3,500 GWh.
The claim of "overcapacity" seems increasingly unfounded and may serve as a disguised excuse to cover up areas where the US is falling behind.
China's new energy enterprises have honed their competitive edge through years of innovation and competition. Meanwhile, the United States exports significant quantities of jet aircraft, agricultural products, high-tech goods, and financial services each year, exceeding domestic demand. Yet they refrain from labeling the same with the "excess capacity" label, viewing these sectors as areas of competitive advantage that are key to strengthening the balance of trade.
Historically, the United States has been a major exporter of goods and services, accounting for a significant share of global exports.
The US argument of "excess capacity" must therefore be rejected. It embodies self-interest and betrays feelings of envy, anxiety and hegemony, which are contrary to economic principles and global interests. Such 'sour grapes' can harm the United States. A more constructive approach would be to embrace China's industrial strengths as a mutual asset, not dismiss them, which would promote cooperation and prosperity more broadly.
China's success in green products stems from its strong capabilities of reliability, affordability, independent innovation, market competition and rapid technological advancement within a large market, not from its dependence on subsidies.
It is undeniable that the world's consumers and businesses are reaping the rewards of China's technologically savvy manufacturing. Chinese companies are offering reliable and cost-effective products that enrich the global supply chain and encourage investment in various countries, thereby stimulating economic growth, easing inflation and advancing technology and sustainability efforts.
Persisting in a "sour grapes" mentality can have unfortunate consequences. In April, a report by the Federal Reserve Bank of New York highlighted how US export controls have led to widespread decoupling of US suppliers from their Chinese counterparts, resulting in significant financial losses, reduced profitability and workforce reductions for affected US entities.
It is essential to dispel the notion of unshakable US dominance in all sectors. The United States should adopt an objective, rational and cooperative attitude towards China's prowess in certain areas and realise that the common future of mankind depends on innovation and cooperation rather than sanctions and repression.
Xinhua/gnews.cz-RoZ_07
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