Nigeria Times

By He Yin, People’s Daily

This year marks the 75th anniversary of the China-Russia diplomatic relations. It is an important milestone year in the history of China-Russia relations.

On May 16, Chinese President Xi Jinping held talks with his Russian counterpart Vladimir Putin, who was on a state visit to China, at the Great Hall of the People in Beijing.

The most important conclusion drawn from the 75-year history of China-Russia relations is that two neighboring major countries must always promote the Five Principles of Peaceful Coexistence, respect each other on an equal footing, trust each other, accommodate each other’s concerns, and truly provide mutual assistance for the development and revitalization of both sides, Xi noted.

This is not only the correct way for China and Russia to get along, but also the direction that major-country relations should strive for in the 21st century, Xi said.

His important remarks have charted the course for the future development of China-Russia relations.

Head-of-state diplomacy is leading the all-round development of the China-Russia comprehensive strategic partnership of coordination for the new era.

The two presidents have held over 40 meetings, maintaining close communication and offering strategic guidance on promoting healthy and stable development of bilateral relations between China and Russia.

This time, Xi and Putin had a candid and fruitful discussion. They had a comprehensive review of the successful experience in developing the China-Russia relationship, and had an in-depth exchange of views on the relationship as well as major international and regional issues of mutual interest, charting the course forward for their cooperation across the board.

The two heads of state signed and issued the Joint Statement of the People’s Republic of China and the Russian Federation on Deepening the Comprehensive Strategic Partnership of Coordination for the New Era in the Context of the 75th Anniversary of China-Russia Diplomatic Relations.

They also witnessed the signing of a number of important intergovernmental and interagency cooperation documents, injecting new, strong impetus into the sound development of China-Russia relations.

China and Russia will uphold the principles of non-alliance, non-confrontation and not targeting any third party, continue to deepen two-way political trust, respect each other’s choice of development path, and realize development and revitalization with each other’s firm support.

In the past three quarters of a century, the China-Russia relationship has grown stronger amidst wind and rain. China and Russia together have found a new path for major and neighboring countries to treat each other with respect and pursue amity and mutually beneficial cooperation. The China-Russia relationship has become a prime example of a new form of international relations as well as good-neighborly relations between two major countries.

The notable progress in China-Russia relations is attributable to the two countries’ commitment to five principles.

First, China and Russia are committed to mutual respect as the fundamental principle of relations, and always render support for each other’s core interests.

Second, China and Russia are committed to win-win cooperation as the driving force of relations, and work to foster a new paradigm of mutual benefit.

Third, China and Russia are committed to lasting friendship as the foundation of relations, and carry forward the torch of Sino-Russian friendship.

Fourth, China and Russia are committed to strategic coordination as an underpinning of relations, and steer global governance in the right direction.

Fifth, China and Russia are committed to fairness and justice as the purpose of relations, and dedicated to the political settlement of hotspots.

With the concerted efforts of the two sides, China-Russia relations have been moving forward steadily, with enhanced comprehensive strategic coordination and further cooperation on economy and trade, investment, energy, people-to-people exchanges, at the subnational level and in other fields. This has made positive contributions to maintaining global strategic stability and promoting greater democracy in international relations.

The two sides will take the 75th anniversary of the diplomatic ties as a new starting point, further synergize development strategies, and continue to enrich the bilateral cooperation, to bring greater benefits to the two countries and peoples, and contribute more positive energy to world prosperity and stability.

The two countries need to make further structural improvements to their cooperation, consolidate the good momentum in trade and other traditional areas of cooperation.

Last year, two-way trade exceeded $240 billion, close to 2.7 times of that of a decade ago. This is a good indication of the all-round cooperation of mutual benefit that continues to deepen between the two countries.

The two countries need to look for areas where their interests converge, tap into their comparative strengths, deepen the integration of interests, and enable each other’s success.

They should make further structural improvements to their cooperation, consolidate the good momentum in trade and other traditional areas of cooperation, support the formation of platforms and networks for basic research, continue to unlock cooperation potential in frontier areas, step up cooperation on ports, transportation and logistics, and help keep the global industrial and supply chains stable.

The two sides should create more highlights for people-to-people exchanges, jointly host successful China-Russia Years of Culture, strengthen cooperation at subnational levels, and continuously tighten the bonds between the two peoples.

By focusing on implementing the Roadmap for China-Russia Cooperation on People-to-People and Cultural Exchanges Before 2030, the two countries are expanding people-to-people and cultural ties.

The two presidents have set 2024 and 2025 as China-Russia Years of Culture, proposed a series of cultural activities that are down to earth, close to people’s hearts and popular among them, and encouraged closer interactions between various sectors and at subnational levels, so as to enhance mutual understanding and affinity between the two peoples.

Both sides are willing to continue to strengthen cooperation within the frameworks including the UN, BRICS and Shanghai Cooperation Organization (SCO) as well as communication on major international and regional issues, so as to establish a fair and equitable global governance system.

Both China and Russia are permanent members of the UN Security Council and major emerging markets. It is the shared strategic choice of both countries to deepen strategic coordination, expand mutually beneficial cooperation and follow the general historical trend of multipolarity in the world and economic globalization.

With Russia chairing BRICS this year and China taking over the chairmanship of the SCO later this year, the two sides will support each other’s chairmanship, build a high-quality partnership that is more comprehensive, close, practical and inclusive, and build the unity and strength of the Global South.

As a Chinese saying goes, “A mountain is formed by accumulation of soil and an ocean is formed by accumulation of water.” After 75 years of solid accumulation, lasting friendship and all-round cooperation between China and Russia provide a strong impetus for the two countries to forge ahead despite wind and rain. Having reached a new starting point, China and Russia will always remain committed to their founding purpose and jointly shoulder responsibility to create more benefits for their peoples and make due contribution to global security and stability.

By Zhong Sheng, People’s Daily

On top of existing tariffs under Section 301, the U.S. recently decided to raise additional tariffs on its imports of Chinese products including electric vehicles (EVs), as part of its ongoing abuse of the Section 301 tariff review procedure driven by domestic political concerns.

The U.S. has unilaterally politicized economic and trade issues and used them as a tool, wielding the stick of tariffs to suppress China’s industrial development and normal economic and technological activities. This not only seriously violates the principles of market economy and international trade rules but also poses a grave threat to the healthy development of the global economy.

The imposition of additional tariffs by the U.S. is a typical act of unilateralism and protectionism.

The U.S. claimed that Chinese products had threatened its “national security” and accused China of engaging in “unfair trade practices,” but all these are baseless excuses. The main purpose of the U.S. imposing additional tariffs on Chinese products is to exploit political gains under the guise of protecting relevant industries.

As pointed out by Clark Packard, a research fellow at the Cato Institute, new tariffs on imported EVs and other products from China are driven mostly by domestic political calculations in the run-up to the 2024 presidential election. It’s truly a race to the protectionist bottom.

The high tariff barriers set by the U.S. impede free trade and undermine fair competition. Such approach does not protect U.S. industries but rather makes them increasingly uncompetitive in a comfortable environment.

Stephen Roach, a senior fellow at Yale University, pointed out that the allegations in the U.S.-initiated Section 301 investigation against China lack evidence, and its attempt to curb China’s industrial development through tariffs is short-sighted and cannot achieve the long-term goal of revitalizing U.S. industries.

The imposition of additional tariffs by the U.S. is a typical act of hegemony and bullying.

The previous U.S. administration’s imposition of tariffs on Chinese products under Section 301 has severely disrupted normal economic and trade exchanges between the two countries and was ruled by the World Trade Organization (WTO) as a violation of WTO regulations.

Instead of correcting its actions, the U.S. has once again imposed tariffs, which demonstrates that certain people in the country are suffering from a chronic case of “China anxiety.” Trying to maintain the U.S. hegemony, they perceive China’s development as a threat and resort to all means to suppress China, in an irrational manner.

The development of China’s new energy industry is the result of technological innovation by Chinese companies and their active participation in market competition. It benefits from China’s complete industrial categories, industrial system, and huge domestic market. It is in line with the needs of global economic development and benefits not just China but also the U.S. and the whole world.

The U.S. resorting to all means to unscrupulously suppress China’s new energy sectors does not prove its strength but rather exposes its lack of confidence. It cannot solve the problems within the U.S. but further disrupts the normal operation of international industrial and supply chains. It cannot prevent China’s development and revitalization but instead encourages over 1.4 billion Chinese people to work even harder.

The Section 301 tariffs imposed on China for the past six years have heightened economic burdens for businesses in both countries and U.S. consumers, disrupted international trade order, and impacted global economic stability and security.

Moody’s has estimated that 92 percent of the costs of the tariff hikes will fall on U.S. consumers, while average U.S. household expenditure increases by $1,300 annually.

Instead of reflecting on the serious drawbacks of unilateralism and protectionism, the U.S. has made yet more mistakes, which have significantly raised the cost of imported goods and caused greater losses for American businesses and consumers.

Craig Allen, president of the U.S.-China Business Council, said that maintenance of the prior tariffs – with no reductions – and imposition of additional tariffs ultimately make it harder for American companies to compete in the U.S. and abroad, cost American jobs, and increase prices for U.S. manufacturers and consumers during a time of ongoing inflation.

At a critical moment of global economic recovery, the U.S. further imposing tariffs is causing trouble for the development of the world economy and is not well-received internationally.

German Chancellor Olaf Scholz and Swedish Prime Minister Ulf Kristersson have recently cautioned against the additional tariffs imposed by the U.S. on China, saying that “when it comes to import duties, I think that we (Sweden and Germany) essentially have a consensus that it is a bad idea to start dismantling global trade.”

Gita Gopinath, first deputy managing director of the International Monetary Fund, noted that under the surface, there are increasing signs of fragmentation. “If the trend continues, we could see a broad retreat from global rules of engagement and, with it, a significant reversal of the gains from economic integration.”

Unilateralism and protectionism go against the trend of the times. Faced with the recent years’ new and evolving situation in China-U.S. business ties, the two sides should stay committed to mutual respect, mutual benefit, and equal-footed consultation, follow economic and market rules, expand and deepen mutually beneficial business cooperation, respect each other’s development rights, and work for win-win outcomes for the two countries and the world at large.

(Zhong Sheng is a pen name often used by People’s Daily to express its views on foreign policy and international affairs.)

By Cao Shiyun, People’s Daily

About two hours’ drive southeast of Jakarta, capital of Indonesia, lies a tranquil mountain range in West Java. As one navigates the winding roads that snake through the mountains, breathtaking vistas gradually unfold. In the distance, under blue skies and white clouds, the Cirata Reservoir emerges, nestled amidst the majestic peaks. What catches the eye, however, are the neatly arranged massive arrays of photovoltaic (PV) panels that float on the surface of the reservoir.

Spanning across the equator, Indonesia is the largest archipelagic country in the world. It boasts mammoth oceanic area and rich solar resources. The Indonesian government has decided to develop solar power generation into the strongest pillar of its clean energy supply by 2060.

As a collaboration project between Indonesia’s state electricity corporation PLN and the United Arab Emirates energy company Masdar, the Cirata floating solar plant was constructed by China’s PowerChina Huadong Engineering Corporation Limited (HDEC) The 192-megawatt-peak capacity power plant was connected to the power grid in November last year.

The Cirata floating solar plant features 13 PV arrays. Each of them measures 430 meters long and 230 meters wide, and includes 48 sub-arrays. Together, they comprise a total of over 28,000 solar panels.

Wang Shaofeng, deputy chief engineer of the project, told People’s Daily that it was the first time for HDEC to build a floating solar farm so huge and challenging that required the company to overcome various problems throughout the designing to construction phases.

According to Wang, the Cirata floating solar plant is the first floating solar farm in the world that floats on a reservoir with depths up to 100 meters.

Due to the complex topography, steep slopes and thick sludge under the water, it was difficult to fix anchor blocks during the construction, Wang noted, adding that the project team specifically developed anchor blocks with higher bearing capacity to make the anchor system stable.

“The Cirata floating solar plant is the first floating PV project in Indonesia and the largest in Southeast Asia. It is a key strategic project of Indonesia at the national level. The smooth implementation and completion of the project have boosted the country’s confidence in energy transition,” said Guo Xiaodan, the representative of PowerChina in Indonesia.

Today, the Cirata floating solar plant accounts for 25 percent of Indonesia’s total new energy generation capacity. It is expected to generate 300,000 megawatt-hours of electricity each year, providing clean energy to about 50,000 Indonesian households.

According to preliminary estimates, the project will save 117,000 tons of standard coal for Indonesia on an annual basis, and reduce the annual emission of carbon dioxide, coal dust, sulfur dioxide and nitrogen oxide by 214,000 tons, 82,000 tons 9,000 tons, and 4,500 tons respectively.

So far, the project has offered over 8,000 jobs for local communities both directly and indirectly. Tang Lijun, on-site manager of the project, told People’s Daily that the most of the project’s employees used to be farmers and fishers, whose incomes were very unstable as they lived at the mercy of the elements.

Their incomes have significantly increased after working on the project, with some experiencing a fourfold surge in monthly earnings, Tang said. After the completion of the project, they can continue to work in operations and maintenance of the project using the skills they have acquired or seek employment in other projects, Tang added.

It is learned that the project has also organized professionals to visit local middle schools to promote PV knowledge, and worked with the local government to recruit interns from Indonesian universities in an effort to cultivate a talent pipeline.

Yoga, a university student in internship on the project, said: “The staff on the project patiently guided and helped us. Here, I learned a lot of knowledge and experience that cannot be gained at university.”

Guo said that the project has always followed a localization strategy, employing local designing, construction and installation teams, and offering multiple safety and skill training sessions for local workers. The project has nurtured a batch of outstanding professionals in the PV industry, Guo added.

The Cirata floating solar plant exemplifies the practical cooperation between China and Indonesia. In recent years, the two countries have achieved significant progress in their collaboration on renewable energy. Notably, PowerChina’s successful river diversion at the Batang Toru Hydropower Station has laid a crucial groundwork for future work. Additionally, Trina Solar, a Chinese PV company, has signed an agreement with Indonesian partners to establish Indonesia’s inaugural production base for PV cells and modules.

“China owns advanced technological expertise in renewable energy. Strengthening cooperation with China will help Indonesia achieve its energy transition goals,” said Agung Pribadi, director of the Center for Mineral, Coal and Geothermal Resources at the Ministry of Energy and Mineral Resources of Indonesia. He emphasized that China will play a crucial role in assisting Indonesia in achieving its carbon neutrality objectives.

“The Cirata floating solar plant has become another iconic project of the Belt and Road cooperation between Indonesia and China after the Jakarta-Bandung High-Speed Railway,” said Veronika S. Saraswati, convener of the China Studies Research Unit at Indonesia’s leading think-tank Center for Strategic and International Studies.

The successful operation of the Cirata floating solar plant once again demonstrates the achievements and potential of cooperation between Indonesia and China in the field of renewable energy, she noted.

She believes that the two countries will continue to deepen their comprehensive strategic partnership for more mutual benefit and win-win cooperation.

By Wang Hao, People’s Daily

As the longest river in China, the Yangtze River amasses a number of tributaries and winds through many deep gorges, offering rich hydropower resources, abundant shipping routes and huge freshwater reserves.

Six mega hydropower stations along the mainstem of the Yangtze River — Wudongde, Baihetan, Xiluodu, Xiangjiaba, Three Gorges Dam, and Gezhouba Dam — form the world’s largest clean energy corridor, which spans over 1,800 kilometers with a water level drop exceeding 900 meters. A total of 110 hydroelectric generators operate in tandem along the corridor, consistently generating green electricity.

Recently, all the six cascade hydropower stations have been connected to an industrial internet platform, which marked the completion of an “industrial brain” of the world’s largest clean energy corridor. This is expected to significantly boost the corridor’s operational efficiency and reliability.

It is reported that these six cascade hydropower stations have generated over 3.5 trillion kilowatt-hours of electricity, equivalent to saving over 1 billion tons of standard coal and reducing carbon dioxide emissions by more than 2.8 billion tons. Besides, the coordination among these cascade reservoirs has also ensured unimpeded shipping, sufficient water supply, and ecological conservation.

The Baihetan hydropower station has 16 hydro-generating units with a total installed capacity of 16 million kilowatts. These units are powered by water plunging over 200 meters from above, with each rotation producing around 150 kilowatt-hours of electricity.

“Our staff work round the clock. With the installation of sensors to collect data in real time, any abnormalities will trigger automatic alerts within the system,” said Wang Bin, deputy director of the operations department of the Baihetan hydropower station run by China Yangtze Power Co., Ltd. (CYPC).

In December 2022, all units of the Baihetan hydropower station went fully operational, which marked the completion of the world’s largest clean energy corridor, a witness to the breakthroughs made by China in hydropower engineering.

For instance, the Gezhouba Dam, completed in the 1980s, has a single-unit capacity of 170 megawatts. Besides, the Three Gorges Dam, the world’s largest hydropower project, is equipped with power-generating units each with a capacity of 700 megawatts.

China’s capability to produce million-kilowatt power-generating units couldn’t have been obtained without new techniques, materials, and industrial upgrades.

Li Haijun, deputy director of the electromechanical technology center of China Three Gorges Corporation (CTG), said that million-kilowatt units undergo significantly higher water pressure impact, rotational speeds and stresses compared to smaller units.

In response to this challenge, CTG has taken the lead in collaborating with major steelmakers to develop 800 MPa high-strength steel plates specifically designed for spiral casings. Such breakthrough has effectively put an end to the long-term reliance on imported steel plates, Li explained.

Scheduling these giant hydropower stations involves multiple aspects across vast spatiotemporal scales, regions, and grids. To handle peak and base loads, higher safety and stability standards are demanded,” explained Tang Zhengyang, deputy director of CYPC’s Water Resources Research Center.

The industrial internet platform enables the hydropower stations to cope with all-business scenarios, including intelligent operations, maintenance, repairs, dispatching, and decision-making, which comprehensively strengthens smart operations and propels digitalization.

Apart from supplying electricity, the clean energy corridor has also formed a 768-kilometer-deep waterway that steadily improves the navigation conditions of the Yangtze River. Previously unnavigable sections have been turned into wide passages, and small ports along the corridor have grown stronger and bigger. For example, along the section in southwest China’s Chongqing municipality, multiple 5,000-ton deep water berths have emerged, which amplify the advantages of water transportation along the Yangtze River, known for its low energy consumption, high capacity and cost-effectiveness.

As a strategic freshwater source of China, the Yangtze River basin commands 995.9 billion cubic meters of water resources annually, accounting for about 36 percent of China’s total. The clean energy corridor alone forms a cascade reservoir cluster with 91.9 billion cubic meters of storage, which serves as a vital strategic freshwater reserve.

Fish populations serve as a crucial indicator of a river’s ecological health. Systematically increasing water discharges from the reservoirs to gradually raise river levels can help create favorable conditions for natural fish spawning and reproduction. Relevant authorities have  conducted multiple ecological scheduling experiments with an increasingly broad scope.

According to an official with the Changjiang Water Resource Commission of the Ministry of Water Resources, current scheduling objectives have expanded beyond facilitating fish propagation. They now encompass layered water withdrawal for temperature regulation, prevention and control of algal blooms, sediment sluicing and silt reduction in reservoirs, and curbing excessive growth of submerged aquatic vegetation.

These efforts are contributing to the conservation and restoration of the aquatic ecosystem across the Yangtze River basin. As a result, the world’s largest clean energy corridor has evolved into a corridor of ecological conservation.

By Jiang Jianke, People’s Daily

A group of scientists from the Chinese Academy of Agricultural Sciences (CAAS) recently announced the success of a trial planting to halve the growth cycle of a conventional rice variety in a desert greenhouse in Hotan, northwest China’s Xinjiang Uygur autonomous region.

“We started the breeding in February this year. Supported by soilless farming, temperature control and artificial lighting, it took just 60 days for the rice seedlings to harvest,” said Wang Sen, a researcher with the CASS’s Institute of Urban Agriculture (IUA).

China is the first country in the world to cultivate rice. With ordinary farming practices, it usually takes 120 to 150 days on average for rice to mature in China’s major rice-growing areas.

Why can the growth cycle of rice be significantly reduced in desert greenhouses of Hotan?

In 2021, Yang Qichang, chief scientist with the IUA, and his team successfully cut the growth cycle of rice by half in laboratory settings in Chengdu, southwest China’s Sichuan province. They also achieved a technological breakthrough that allows rice to be cultivated throughout the year, without being limited by seasonal factors.

Yang noted that cultivating rice in laboratory settings is costly, adding that he and his team hoped to explore a technical approach that could achieve speed breeding while also significantly reducing costs.

“We found that Hotan is an ideal place for building greenhouses because the land and operating costs are relatively low here with its vast deserts, abundant sunlight and heat resources. Implementing speed breeding here can significantly reduce costs,” Yang explained.

In the greenhouses of Hotan, Yang and his team replaced soil cultivation with nutrient solutions and employed multi-spectrum LED light sources and environmental control technologies to regulate the lighting and temperature conditions. After more than two years of experiments, the team finally achieved speed rice breeding in desert greenhouses.

Later, Yang and his team continued to explore key technologies for the fast breeding of other crops in desert greenhouses, including soybeans, corn, wheat, oilseed crops and cotton.

The successful trial planting demonstrated that speed breeding in desert greenhouses is entirely feasible and provides an effective method to produce more generations of rice each year, Yang said. Besides, the efficacy of low-cost, highly efficient and energy-saving gutter-connected desert greenhouses has also been validated, he added.

“After future integration with new energy and other technologies, construction and operating costs will be greatly reduced, which will make such greenhouses strongly competitive globally,” Yang told People’s Daily.

By Zhong Caiwen

Recently, some American politicians have been unreasonably hyping up the false narrative of “overcapacity” in China’s new energy sector, accusing China of exporting excess capacity to the world.

Such narrative is merely rhetoric fabricated by the U.S. to protect its domestic industries, and to tarnish and suppress the Chinese economy. It is essentially an excuse to justify protectionism, which is detrimental to global trade and division of labor, ultimately harming the well-being of all humanity.

Fundamentally, the United States is protecting its excess low-end capacity.

From a global perspective, free and open international trade and investment can boost competitiveness of industries across the world. Since the Industrial Revolution, the emergence of any new product or the rise of any new industry has followed this pattern. History has repeatedly proven that protectionist “greenhouses” cannot cultivate truly competitive industries and companies.

As Bloomberg recently argued, despite implementing steel protectionist measures over the past decade, Washington has failed to prevent the decline in employment within the U.S. metal manufacturing industry.

The implementation of protectionist policies by the U.S. in industries such as new energy would not just undermine its capabilities to tackle climate change but also severely hinder the growth of industries like automotive and energy.

Protectionism exacerbates global overcapacity and incurs substantial cost losses.

With the end of the Cold War, economic globalization has fully developed, marked by significant reductions in tariffs and non-tariff barriers and notable decline of protectionism.

It has promoted division of labor and cooperation among countries, enabling the free flow of production factors, smooth trade integration, and orderly transfer of capacity, and fostering complete and efficient global industrial and supply chains, which has significantly propelled global economic growth.

However, under the influence of rising geopolitical competition, protectionism has resurfaced in recent years, causing a surge in anti-globalization measures.

For one, measures such as tariffs, trade controls, and technological blockades imposed by the U.S. have caused intensified fragmentation of the global market and economy.

For another, the U.S. has pushed for the restructuring of industrial and supply chains under pretext of national security, leading to redundancy of production capacities within certain sectors in some countries and even the whole world, incurring significant financial losses in their economic and social development.

The WTO has previously estimated a full decoupling of the world into geopolitical blocks could reduce global GDP by 5%.

As the world is undergoing the critical transition from old to new growth drivers, adopting protectionist measures in emerging sectors such as new energy will cause even greater damage.

Protectionist policies of the U.S. have harmed the well-being of both Americans and people worldwide.

Based on the specialized division of labor, free trade allows countries to fully leverage their comparative advantages and maximize the benefits of all trading partners. In contrast, protectionism often leads to high inflation, increased production and living costs, and losses in production efficiency and consumer welfare. It is often domestic consumers that suffer the most.

The Federal Reserve Bank of New York estimated in 2019 that the U.S. tariffs on Chinese imports cost the average American household $831 annually.

For instance, the three major tech-intensive green products of China, or the “new three” — new energy vehicles (NEVs), lithium-ion batteries, and photovoltaic products are highly sought after in the global market. Rising protectionism will hinder the public’s access to these affordable Chinese new energy products.

Protectionism leads to a lose-lose scenario.

Free and open international trade and investment can improve resource allocation globally and enhance global productivity through efficient industrial and supply chains, thereby promoting shared development of all countries involved.

In contrast, protectionism goes against this trend and results in unintended consequences. Politicizing and overstretching the concept of national security on capacity and other economic and trade issues violate economic principles and the general trend of development, inevitably leading to negative outcomes in the medium to long term.

A severe fragmentation of the global economy after decades of increasing economic integration could reduce global economic output by up to 7%, but the losses could reach 8% to 12% in some countries, if technology is also decoupled, the International Monetary Fund (IMF) said in a report last year.

Adopting anti-globalization measures such as decoupling, friendshoring or nearshoring in emerging sectors like new energy and digital economy will ultimately lead to inefficient use of global resources and decreased efficiency, hinder the sustainable growth of the global economy, and narrow or even stifle the room for economic growth.

Countries should join hands to oppose protectionism. In an increasingly interdependent and integrated world, countries form a community of shared interests. The world will never return to isolation, and no one can sever the ties between countries.

It is crucial for countries to firmly stand on the right side of history by championing the overall trend of economic globalization, take a clear-cut stand on free trade and real multilateralism, and oppose unilateralism and protectionism.

Countries should firmly oppose politicizing trade issues, using trade issues as a weapon for ulterior motives, and the abuse of the concept of national security. They should handle differences in accordance with market economy principles and WTO rules, build an open world economy, and work together to make the pie bigger for mutual benefit and win-win results.

By Zhong Caiwen

In recent times, the United States has been promoting the notion of “overcapacity” in China’s new energy sector, even in the absence of factual evidence. This has led to some countries following suit and joining in the hype. The true purpose behind these efforts is quite evident.

The main objective of hyping up this notion is to contain and suppress China’s advantageous industries. The United States has identified China as its most serious strategic competitor. In the economic realm, the United States has been attempting to suppress China’s high-tech and strategic emerging industries. Given that the new energy sector is crucial for green and low-carbon transformation and future development, it has inevitably become a focal point for the United States in its competition with China and its efforts to restrain and suppress China’s growth.

In recent years, China’s new energy industry has experienced robust growth, with three major tech-intensive green products, or the “new three” — new energy vehicles (NEVs), lithium-ion batteries, and photovoltaic products gaining wide popularity globally. China has established a certain competitive advantage in the global market by pursuing technological innovation, production efficiency, and high-quality products.

During this year’s China Import and Export Fair, or Canton Fair, importers from Europe and the United States noted the popularity of China’s green technologies worldwide and acknowledged the country’s role as a global leader in NEV sector. They were also keen to procure more NEVs from China.

Earlier this year, journalist and writer Henry Sanderson highlighted in Foreign Affairs that when it comes to clean energy industries, the West lags far behind China. “China is at the forefront not just in production and deployment of clean energy technologies but also now in innovation,” said Sanderson.

Bloomberg reported on April 2 that Chinese carmakers are more competitive, thanks to technology, local supply chains, brand new transport infrastructure, and lower energy and land costs. Chinese companies aren’t dumping electric vehicles on global markets at a lower cost. China’s biggest electric vehicle exporters all have capacity utilization rates above 80 percent, said the report.

The U.S. government turns a blind eye to these facts and maliciously promotes the notion of “overcapacity” in China’s new energy sector. It distorts China’s industrial policies, overstretches the concept of national security, and attempts to rally allies and partners to decouple from and disrupt China’s new energy industry. The ultimate goal is to impede and suppress the development of China’s advanced manufacturing and new energy industries with unfair and non-market means.

The intention behind the “overcapacity” narrative in China’s new energy sector is to support U.S. domestic industries. Since the 1970s, traditional manufacturing in the U.S. has increasingly moved to developing countries with lower production costs, causing the hollowing out of its manufacturing sector.

The value added of manufacturing contributed 22.7 percent to the U.S. GDP in 1970, but the figure dropped to 10.3 percent in 2022. During the same period, the proportion of manufacturing employment to total non-farm employment decreased from 24.5 percent to 8.4 percent.

The 2008 global financial crisis revealed the dangers of an economy detached from tangible production, prompting the U.S. government to implement a reindustrialization strategy that aimed at reshoring the manufacturing sector and developing U.S. domestic industries.

When it comes to the new energy sector, the conflicting ideologies of the Democratic and Republican parties have resulted in a wavering and indecisive approach in balancing traditional energy sources with the advancement of clean energy. This created the pendulum effect that has hindered the development of the U.S. new energy industry.

At the beginning, the U.S. actively participated in global climate governance and implemented the Paris Agreement on climate change, vigorously developing clean energy technologies.

However, it later announced the withdrawal from the Paris Agreement and shifted its energy policy towards the traditional fossil energy industry.

In August 2022, President Biden signed the Inflation Reduction Act into law, marking another major shift in the U.S. climate and energy policy. According to the Act, subsidies of up to $369 billion would be invested in industries such as NEVs, charging stations, and photovoltaic equipment.

The fluctuating energy policies have bewildered many new energy companies in the U.S., causing them to miss out important development opportunities.

In light of this situation, the primary objective behind the “overcapacity” narrative in China’s new energy sector is to create more time and room for the development of its domestic new energy industry.

The hype of the “overcapacity” narrative in China’s new energy sector is also partly fueled by the political agenda within the U.S., which is grappling with economic and social challenges. As anxiety and apprehension grow over China’s development, shifting the blame outward and projecting a display of power against China has emerged as a convenient political tactic.

This year’s U.S. election will hinge on the outcomes in a few key swing states. According to the latest polling data released by Real Clear Politics, support for Democratic and Republican candidates in six critical swing states – Pennsylvania, Michigan, Georgia, Arizona, Wisconsin, and Nevada – is hovering around 45 percent, making the contest exceedingly tight.

Traditional industries like steel and fuel-powered automotive manufacturing, and new energy sectors such as NEVs, lithium-ion batteries, and photovoltaic products, are pivotal economic drivers that underpin job creation and local livelihoods in these battleground states.

Whether it’s the steel industry in Pennsylvania, the fuel-powered automotive industry in Michigan, the solar industry in Georgia and Arizona, the NEVs industry in Wisconsin, or the battery industry in Nevada, all face competitive pressures from global players, including China.

Raising the narrative of “overcapacity” in China’s new energy sector at this juncture is an important strategy for U.S. presidential candidates to win over voters and stakeholders in these critical swing states.

Driven by domestic economic and political imperatives, the U.S. “overcapacity” narrative in China’s new energy sector, in disregard of market dynamics and international rules. Such narrative is a new pretext for economic de-globalization, protectionism, and unilateralism. A few other countries, blinded by their own short-term interests, are jumping on this bandwagon indiscriminately.

This doesn’t benefit China, the U.S., other countries involved, or the world at large. Curbing and suppressing the development of China’s new energy industry will not strengthen domestic industries in the U.S.; instead, it will distort the international market and undermine efficient resource allocation.

History has repeatedly proven that unilateralism and protectionism ultimately result in self-inflicted harm. The international community faces common challenges in green and low-carbon transition and addressing climate change. The development of China’s new energy industry aligns with future development trends and contributes to the UN 2030 Agenda for Sustainable Development and the Paris Agreement on climate change.

It is hoped that the U.S. and a few other countries adopt the vision to build a community with a shared future for mankind and proceed from the fundamental well-being of their own people and the people in the rest of the world. They should uphold the principles of multilateralism and free trade, and strengthen cooperation with China in the new energy sector to address common challenges faced by the world.