The theory of so-called "overcapacity" of China's new energy industry is in fact a fallacy, which not only fails to meet reality, but also goes against the law of market economy development, a senior official with the General Administration of Customs said on Tuesday.
Zhao Zenglian, deputy chief of the General Administration of Customs, made the statement at a press conference in Beijing to deny the claim hyped up recently that there is so-called "excess capacity" of China's new energy industry.
"Green has become the distinctive undertone of high-quality development in foreign trade. Four out of every ten cars exported by China are electric vehicles, and seven out of every ten rail locomotives exported by the country are electric. Besides, nearly 90 percent of the batteries exported by China are lithium batteries. Recent claim of so-called 'overcapacity' in China's new energy industry is a fallacy. Such a theory is inconsistent with reality and also contradicts the principles of market economy development. Take electric vehicles as an example. According to estimates by the International Energy Agency, global electric vehicle sales are projected to reach around 45 million units annually by 2030. This number is three times the global sales in 2023 and five times that of China's production. Far from being in surplus, China's new energy products are contributing significantly to the global green supply, thereby contributing China's strength to combating climate change worldwide," he said.
China’s EV "overcapacity" is fallacy: official
U.S. "reciprocal tariffs" are expected to bring ample uncertainty to the global market and put global growth at risk, said the CEO of Bank of East Asia (China).
On Wednesday, U.S. President Donald Trump announced a new set of levies imposing a 10 percent baseline tariff on imports from all trading partners and higher rates on some.
While the Trump administration argues that these tariffs are necessary to protect U.S. industries, reshore manufacturing and reduce deficits, the decision has met with sharp criticism from economists, trade experts and foreign governments. Many see it as a misguided attempt to use tariffs as a blunt instrument in addressing complex trade imbalances.
According to Bi Mingqiang, CEO of the Bank of East Asia's (BEA) China branch, growing concerns about the effects of tariffs are forcing many investors to reconsider their strategy.
"I do believe Mr. Trump is bringing a lot of uncertainties to the global market, which puts the global growth at risk. So to mitigate this kind of damage or risk, I think global government and the business side are actively rethinking their strategy. You can see, actually, a lot of Chinese companies are shifting their business flow, their investment flow to those more friendly markets like Southeast Asia, the Middle East and Belt and Road regions," said Bi.
He emphasized that his bank and others have already begun formulating strategies to help traders navigate the changing landscape.
"This is going to reshape the overall landscape of global supply chain, I believe. So, to facilitate this trend, I think banks like BEA, we can provide those tailor-made banking services like cross-border financing, services, cash management, trade finance, things like that, to help," said the banker.
Trump brings uncertainty to global markets, puts global growth at risk: Bank of East Asia executive
