China's automotive industry is developing within a reasonable range and does not face overcapacity as it aligns with the typical global pattern, according to an official with the China Association of Automobile Manufacturers (CAAM).
Data from the CAAM shows that, during the first quarter of this year, the production and sales of new energy vehicles (NEVs) in China reached 2.115 million and 2.09 million units, respectively, with a year-on-year growth of 28.2 percent and 31.8 percent. The market share reached 31.1 percent, and the market size continued to expand. Fu Bingfeng, executive vice president and secretary general of the CAAM, stated that the Chinese automotive industry does not face overcapacity as it aligns with the typical global pattern where a production capacity utilization rate of 70 percent to 90 percent is deemed reasonable.
"According to the data of last year, our capacity utilization rate of automobile industry was already at the 70 percent mark, indicating that it is not a serious concern," said Fu. Meanwhile, Fu said, the capacity utilization rate of gasoline vehicles will decrease with the popularization of electric vehicles. Many companies are transforming their vehicle production lines. The upgrading of China's NEV industry has also produced a positive impact on the global automobile industry. The country's Chery Automobile recently signed a pact with Spain's auto company Ebro-EV Motors to develop new electric vehicles through a joint venture in Barcelona. Chinese automaker BYD is planning to establish a factory in Mexico, according to its latest financial report. The Chinese NEV industry's technological innovation and cost advantages have also promoted competition and advancement in the global market.
So far, China has developed a comprehensive industrial ecosystem from batteries, electric motors, electronic control, and complete vehicle manufacturing, which is driving the restructuring of the global automotive industry chain.
Capacity utilization data indicates no 'overcapacity' in China's automotive sector
Capacity utilization data indicates no 'overcapacity' in China's automotive sector
Capacity utilization data indicates no 'overcapacity' in China's automotive sector
Capacity utilization data indicates no 'overcapacity' in China's automotive sector
Secretary General of the International Federation of Red Cross and Red Crescent Societies (IFRC) Jagan Chapagain emphasized the critical urgency of tackling the climate crisis, which stands as one of the most fundamental challenges facing our world today, as he cited unprecedented weather patterns that have had an impact on human life and resources.
His remarks came during a Wednesday interview with China Global Television Network (CGTN), coinciding with high-level talks in Washington between China and the U.S. on addressing the climate crisis, scheduled from May 7 to 16.
Chapagain stressed the need for innovative fundraising mechanisms, as he highlighted lack of funding as the most critical challenge in combating climate change.
"I mean the climate crisis, if we talk about it, it's one of the fundamental crisis the world is facing today. If we just look back the last 12 months, look at the weather pattern anywhere in the world, it doesn't resemble to anything we experienced. And it's creating a multiple impact on human life; climate and health, climate and food security, climate and water-its impact there, climate and energy. So these are multiple issues that are impacting the people living in vulnerable settings. So at the moment, being humanitarian, it is not an easy time for the humanitarians. Now, the challenge is how do we get those negotiations and turn them into action on the ground where people are actually living. And there, I think the action part is still lagging behind. The second aspect which is also lagging behind is funding, because whenever you have any decision or resolution to operationalize that, it requires funding. And this has been one of the big asks from my organization; how do we get the funding channel to the communities and the countries which need it the most? I was recently in Malawi, and I had a chance to talk to the climate minister there. And one of his main concerns was the climate funding is not sufficiently reaching the communities who need it the most. They are trying their best, but the posting is the amount available is not enough," he said.
Climate action is a key focus for Chapagain's visit to China, as he believes that collaboration with countries such as China is crucial in tackling the climate crisis.
"The second thing is even when it is available, the flow of funding is not reaching the local community level, and this is one of our major asks. Globally, it has been to channel the right level of resources reaching the people at the community. And this is one of the things during my trip here in also China. I have been discussing because China has played a significant role in COP negotiations, but also in making a huge transition, particularly on the energy transition and investing at the community level. And I believe that the partnership with countries like China is extremely important if we are to turn the tide of the climate crisis," he said.
IFRC chief urges immediate action to combat climate crisis
