China firmly opposes West’s groundless ‘overcapacity’ hype: MOFCOM

China firmly opposes the groundless “overcapacity” hype by some Western countries and urges relevant countries to objectively and comprehensively look at global demand for new energy and China’s new-energy development, China’s Ministry of Commerce (MOFCOM) said on Thursday.

The rhetoric of “overcapacity” in China reflects the typically self-contradictory double standards of some Western countries, which hold up the banner of green development on the one hand while wielding the big stick of protectionism on the other, He Yadong, a MOFCOM spokesperson, said during a press conference.

“Such practices not only hinder the global green transformation and shake confidence in climate cooperation, but also undermine the determination of global businesses to engage in foreign trade and investment cooperation,” He said.

Analysts said that the remarks were the latest responses to the hype by the US and Europe that China has “overcapacity” in some industries such as new-energy vehicles (NEVs), as Western countries attempt to restrict the market access of Chinese enterprises and shelter their own industries through protectionist measures.

From a global perspective, there is a serious shortage of capacity in the new-energy sector rather than overcapacity, the MOFCOM spokesperson said.

According to an estimate by the International Energy Agency, global sales of NEVs will reach 45 million units in 2030, 4.5 times the 2022 figure and three times the 2023 figure. Global demand for new photovoltaic installations will reach 820 gigawatts, about four times that of 2022, underscoring that the global supply of new-energy products is not in excess but is insufficient.

China’s new-energy industry continues to provide affordable and high-quality capacity, making significant contributions to global green development, said He, noting that the development of new energy is an important measure for the world to address climate change.

“We hope that relevant countries can view the global demand for new-energy markets and the development of China’s new-energy industry objectively and rationally, and fairly evaluate the important role that Chinese new-energy products have played in the global green transformation,” said He.