Guide
China has made great strides in the field of clean energy and electric vehicles, becoming a global market leader. Technological innovation and cost reduction through large-scale investment and competition have led to a significant reduction in the price of clean energy products. The secret to China's success in these emerging technologies lies in supporting talented people and innovative ideas, developing long-term plans, implementing them quickly, and uniting the whole country to support new ideas and achieve strategic goals. China's success has not only fueled the global green manufacturing revolution, but also provided an example of hope and action for other countries.
Djoomart Otorbaev, former Prime Minister of the Kyrgyz Republic and Distinguished Professor at the Belt and Road Institute of Beijing Normal University
The European Union announced on July 4 that it would impose tariffs of up to 37.6% on electric vehicles imported from China. The Chinese government has warned that the EU's move could have a significant impact on the global trade landscape and could trigger a trade war. The EU said the tariffs were due to "unfair" government subsidies. The new tariffs came into effect on July 5 and will last up to four months, during which time negotiations between China and the EU are expected to continue.
The EU's imposition of sanctions is an admission of its failure and lack of competitiveness. At least Germany automakers are reportedly reluctant to admit defeat and intend to compete fairly with Chinese companies. The Germany Association of the Automotive Industry has urged the European Commission to drop tariffs on Chinese electric vehicles. The CEO of the BMW Group also said in a statement that the EU tariffs would lead to a "dead end".
China has made remarkable progress in the development and implementation of clean technologies, which has not only strengthened national pride, but also contributed to the transformation of the global landscape. In order to provide advanced products to domestic and foreign markets to combat climate change, China's investment in clean energy last year increased by 1.7 trillion yuan year-on-year to 6.3 trillion yuan, an increase of 40%. This increase is comparable to the total amount of global investment in fossil fuels. The clean energy industry is critical to China's efforts to meet its environmental and economic goals. In 2023, the clean energy industry contributed 11.4 trillion yuan to China's economy, up 30% year-on-year, accounting for about 40% of the year-on-year GDP growth of all industries.
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Significant investments in clean energy have boosted China's economy, reshaped international markets, set a new benchmark for clean energy investment, and shaped the global economic landscape. In addition, Chinese tech giants such as Xiaomi and Huawei have also entered the electric vehicle market, increasing the competitiveness and innovation of the automotive industry.
Fierce competition among domestic manufacturers is a key factor in making the latest clean energy equipment and technologies more affordable. This competition has led to a significant reduction in prices, making clean energy products more affordable. For example, in the past year alone, the cost of solar panels has fallen by 42%, well above the historical average annual decline of around 17%. As a result, the price of the latest Chinese product is almost two-thirds lower than that of its United States counterpart. Battery prices also fell by a record 50% last year.
As a result of this competition, China has won more than 60% of the world's electric vehicle production, and more than 80% of the world's solar panel production. Last year, 97 percent of the solar panels installed in Europe were made in China. Chinese manufacturers of eco-friendly products have slashed prices to make these products more affordable to consumers around the world, helping to reduce their carbon footprint and combat global warming.
The glorious history of China's electric vehicle development is worth mentioning. Some attribute China's achievements in this area to Wan Gang, chairman of the China Association for Science and Technology and known as the "father of China's electric vehicles." Wan Gang began to get involved in the mechanical engineering industry in the 80s of the 20th century, and later served as the Minister of Science and Technology from 2007 to 2018. In 2000, Wan Gang proposed to the State Council to develop clean energy cars and realize the leapfrog development of China's automobile industry, and received the support of the government. China's electric vehicle industry has grown rapidly and has now become a state-supported industry, with thousands of managers, scientists, and engineers working tirelessly to make it happen.
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The secret to China's success in these breakthrough technologies lies in supporting talented people and innovative ideas, developing long-term forecasts and plans, implementing plans quickly, and uniting the whole country to support new ideas and achieve strategic goals. The rapid development of electric vehicles is one of the outstanding achievements of China's "green manufacturing" revolution.
Between 2009 and 2017, the Chinese government invested more than $60 billion to boost electric vehicle production. In 2011, only about 1,000 electric and hybrid vehicles were sold in the country, while in 2023, this number has reached 9.49 million.
Those who claim that EVs are "overcapacity" don't understand that this concept doesn't apply to the EV industry. While traditional manufacturing companies produce based on expected market demand, Chinese EV companies will only start production after receiving orders. Under this model, the current capacity utilization rate of China's auto factories is about 70%, which directly refutes the claim of "overcapacity". Modern manufacturing companies, especially in the clean energy sector, cannot afford to overstock.
China's leading position in cutting-edge technology is the result of strong public support, not only thanks to its long-term strategic planning, ambitious action plans, and selection of highly skilled personnel. Driven by the government's policy of encouraging R&D, this successful model enables scientists and engineers to continuously discover, invent, and integrate new technologies into the production process. China's extraordinary achievements have lit a beacon of hope for other countries and sounded a clarion call for action to the global community.
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Producer: China Daily, China Watch Think Tank
Editor-in-charge: Song Ping, Liu Xia
Editor: Zhang Zhao
Intern Zhu Shiqi also contributed
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