China has established significant competitive strengths in the fields of clean energy technologies, including electric vehicles (EVs), lithium batteries and photovoltaic (PV) products. These strengths have positioned China as a leading player in the global clean energy revolution, contributing in no small way to sustainable development worldwide. Given the extent of China’s carbon-based footprint, the ramifications of a significant transition to new, cleaner energy technologies can make a substantial difference in the fight against global climate change.
China’s competitive advantages derive from a number of key factors. First, China has the world’s largest manufacturing capacity for solar panels, lithium-ion batteries, and electric vehicles. This scale allows for substantial cost efficiencies that are hard to replicate by other countries; these efficiencies are supported by a steadily developing and increasingly refined comprehensive supply chain ecosystem. The country's ability to rapidly scale up production and reduce costs through ongoing innovations in manufacturing processes is a key source of its competitive advantage. One just has to examine the features and performance of the new Xiaomi Su7 electric car to appreciate the extent to which the performance of China’s innovation system has excelled.
Second, China is not just a global leader in the production of new energy technologies but also increasingly in their overall development and application. For example, Chinese companies, such as BYD and CATL, are at the forefront of developing new battery technologies, including advancements in solid-state batteries and improvements in solar panel efficiency.
Third, the competitive pricing and reliable technology of Chinese products have made renewable energy more accessible and affordable globally. While some countries have raised questions about the reasons for China’s success in these fields, the reality is that Chinese enterprises have been able to harness the high-end talent, systems integration capabilities, and R&D improvements to excel in these three key clean energy fields.
Whatever objections might exist, the reality is that by producing and exporting high volumes of affordable photovoltaic panels, China is continuing to play a significant role in promoting the adoption of solar energy. Advances by companies such as CHINT Group and JA Solar Holdings have helped reduce the cost of solar installations worldwide, making renewable energy more accessible to both developed and developing countries.
In addition, China’s leadership in the electric vehicle market and its role as a major exporter of EVs and batteries have supported global efforts to reduce reliance on fossil fuels in transportation. Chinese-made EVs and EV components are critical in the battle to reduce emissions and tackle global environmental problems. Moreover, Chinese success has acted as a catalyst in helping to promote the electric vehicle market on a regional and global level. China’s efficient production capabilities have driven down the costs of key green technologies, including batteries and solar panels. This cost reduction has made these technologies competitive with traditional energy sources, accelerating the global transition to clean energy products.
Overall, China’s export of new clean energy products has contributed significantly to global green development by enhancing the affordability, accessibility and technological advancement of non-carbon-based energy solutions. In contrast to some prevailing concerns about China’s carbon footprint, it is also important to acknowledge its role as a game changer. Even amid continuing trade tensions, we must not lose sight of the fact that China's competitive successes in these three fields support global efforts to tackle climate change and promote sustainable development.
(The author is a distinguished fellow at the Institute for China-America Studies, and former Executive Vice Chancellor at Duke Kunshan University. The views expressed in this article reflect those of the author only, not necessarily those of the People’s Daily.)