Tide News:

Recently, we've heard some Western countries hyping up the issue of "overcapacity" in China's new energy sector, claiming that China's new energy exports are impacting international markets. Could you please comment on this from the NEA's perspective?

Zhang Jianhua:

Thank you for your question. Mr. Li has just introduced some data on our country's new energy development, from which I believe many conclusions can be drawn. China's new energy industry has proven its true capabilities through open competition and represents advanced production capacity. It has not only enriched global supply and alleviated international inflationary pressures but also made significant contributions to global climate change mitigation and green transformation. This achievement has been fully recognized by the global energy industry. From both the perspectives of comparative advantages and global market demand, China's new energy industry does not face the so-called "overcapacity" issue.

In the context of economic globalization, we should adhere to the principles of a market economy and the law of value when addressing issues of production capacity. The balance between supply and demand is inherently relative, often characterized by imbalance as the norm. This dynamic is common in market economies, where moderate oversupply can drive technological advancement and industry-wide cost reductions. The primary solution to addressing these issues lies in allowing the market to adjust in accordance with the law of value.

Take photovoltaics as an example. On one hand, the global photovoltaic industry is experiencing a prosperous growth cycle, with companies eager to expand their production capacities. According to estimates by the International Renewable Energy Agency, to achieve the goals of the Paris Agreement, the cumulative global installed capacity of photovoltaics is projected to surpass 5.4 billion kilowatts by 2030, nearly quadrupling the capacity installed by 2023. Therefore, the development prospects are very promising. In China, the upstream photovoltaic industry is predominantly composed of highly competitive private companies. Due to optimistic expectations for future market growth, these companies are actively expanding their production capacities. On the other hand, the adoption of new technologies and the phase-out of outdated capacities require time. Technological advancements in the photovoltaic industry have been rapid, stabilizing new technological pathways since 2023 and notably reducing investment costs in production capacity equipment. Companies are continuously commissioning advanced capacities to maintain overall market competitiveness. Meanwhile, outdated capacities still exist on a large scale and need to be gradually phased out. During the transition period of technological pathways, the coexistence of new and old capacities has also increased the overall industry capacity. Additionally, some companies need to enhance their core competitiveness. In the context of the industry's continuous technological development, some companies have gradually lost market competitiveness due to a lack of ability to continuously optimize processes and upgrade production lines. Moving forward, we will proactively collaborate with relevant departments to regulate the orderly development of the photovoltaic industry and promote its healthy and sustainable growth.

Furthermore, I would like to emphasize that the essence of international cooperation lies in complementary advantages and mutual benefits. There are broad common interests and significant international cooperation opportunities among all parties in the green transition. Therefore, China aims to collaborate with all parties to uphold the basic principles of fair competition and open cooperation in a market economy. Together, we strive to enhance our clean energy industry and supply chains, share knowledge and experiences, and contribute significantly to the global green and low-carbon transition. Thank you.