BEIJING: The U.S. “overcapacity” narrative against China’s new energy sector is diametrically opposed to facts and the laws of economics and is pure protectionism, Chinese foreign ministry spokesperson Wang Wenbin said Wednesday.
It is reported that U.S. Treasury Secretary Yellen has said Chinese production in areas such as electric vehicles, batteries and solar panels “significantly exceeds global demand.”
In response, Wang told a daily press briefing that China has made it clear that its new energy sector has thrived because of its companies’ decades-long technology accumulation and participation in open competition.
They competed their way to excellence rather than relied on industrial subsidies. That’s fully consistent with the principles of market economy and fair competition, said Wang.
China’s new energy sector offers advanced capacity urgently needed for the global economy’s green transition, and it is not “overcapacity,” he said.
“According to U.S. logic, any large export of a particular product means an ‘overcapacity.’ If so, shouldn’t U.S. soy, plane and natural gas exports in large amounts be considered overcapacity? Shouldn’t the G7 finance ministers meeting first and foremost focus on U.S. overcapacity in those areas?” Wang said.
“Overcapacity” is just a pretext for the U.S. to try to coerce G7 members into creating fences and restrictions for Chinese new energy products, said Wang, noting that this could mean building a coalition for protectionism which is completely against the trend of the times that calls for openness and mutual benefit.
It will not only hurt the consumers in those countries but also impede global green transition, he said.
“We need to point out that green double standard is not an option. If you want to deal with climate change, then you must say no to protectionism. If one resorts to protectionism, there will be no real solution to climate change,” said the spokesperson.
“The U.S. can’t just wave the banner of climate response and ask China to take on greater responsibility on the one hand, while wielding the stick of protectionism and not letting Chinese green products benefit the world on the other,” he said.
China stands ready to work with all countries to deepen cooperation on new energy industrial and supply chains, and promote tech innovation and industrial development, Wang said.
“We hope that countries will embrace open cooperation, reject protectionism, strive for win-win and prevent lose-lose,” the spokesperson added.
