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China's booming new energy industry a boon for the world

Xinhua | Updated: 2024-05-21 16:50
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BEIJING - In recent years, products from China's new energy industry, such as electric vehicles (EVs) and photovoltaic products, have made their marks in the global market.

This has sparked heated discussions among observers regarding the extent to which Chinese new energy technologies and products benefit their societies. In fact, China's progress in this industry not only promotes its own sustainable development but also holds positive implications for the global community.

First and foremost, China plays a crucial role in producing new energy products and reducing global carbon emissions.

As the world's largest producer of new energy vehicles, China has leveraged its industrial prowess to fulfill its emission reduction commitments. China's National Big Data Alliance for New Energy Vehicles has recently announced that in March, monthly carbon emissions reductions from new energy vehicles have surpassed 9 million tons for the first time, a significant milestone in China's green development.

By the same token, data from the National Energy Administration has revealed that China contributed over 50 percent of the 510 gigawatts of newly installed renewable energy capacity worldwide in 2023.

The increase in carbon emissions reductions from China's EV and installed renewable energy capacity is a boon for the energy transition of China and the world at large.

China accounts for almost 60 percent of the new renewable capacity expected to become operational globally by 2028. This makes China a major contributor to the global goal of tripling the world's renewable capacity by 2030, said the International Energy Agency (IEA).

Secondly, China emerges as a pivotal global player by exporting affordable new energy products to consumers worldwide.

In the "Global EV Outlook 2023," the IEA projected that outside of China, there is a need for original equipment manufacturers to offer affordable, competitively priced options in order to enable mass adoption of EVs.

Thanks to China's capacity to manufacture the majority of industrial products, it has gained a significant competitive edge in producing affordable products in the new energy sector.

Most notable is the rise of BYD, China's leading EV manufacturer. Its success is largely attributed to its vertical integration strategy and self-produced core components, which result in significant cost-effectiveness.

From sub-$10,000 compact cars to gleaming sports sedans for less than $30,000, China manufactures a diverse range of electric vehicles that cater to the needs of global customers.

China's wind and photovoltaic power products have also been exported to over 200 countries and regions, helping to reduce electricity generation costs globally.

Finally, the rise of China's new energy industry drives the world towards a green and low-carbon future.

Chinese enterprises' clean energy investments abroad have spanned major countries and regions, encompassing wind, photovoltaic, and hydropower projects. These investments, based on mutual benefit and win-win outcomes, have supported local low-carbon growth.

China has partnered with over 100 countries on green energy projects, helping to drive down green transition costs and solve issues like electricity shortages. The major manufacturing hub has also carried out various forms of cooperation under the framework of green Belt and Road cooperation.

China has engaged in cooperation with other nations characterized by long-term commitment, deep integration, and active contribution to local economic and social development. This involves strategic partnerships, technology transfer and localized production, which are essential to ensure the trade yields mutual benefits.

As the Diplomat magazine has observed, Southeast Asian nations are actively courting Chinese EV companies in a collaboration that not only strengthens the imperative transition away from fossil fuel vehicles, but also fuels economic growth through technological exchange.

Erik Solheim, former UN under-secretary-general and former UN Environment executive director, said that for the green transformation of the world, China is the indispensable nation.

"The power of China to help the world go green is enormous," he said.

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