BEIJING: The rapid development of China’s green industries has made a significant contribution to the global fight against climate change by accelerating the green transition of the automobile industry, providing affordable green energy and promoting green technology cooperation, officials, executives and experts said.
The allegation that China’s green industries are hammering global industrial chains with “overcapacity” — a situation where there is too much production capacity relative to demand — is not only flawed and unfair but likely fabricated for selfish purposes, they said.
“Equating supply-demand relationship fluctuations with ‘overcapacity’ is a fundamental misunderstanding of how a market economy works,” the National Development and Reform Commission said in a column published on Tuesday.
The comments came amid claims of overcapacity put forth by some nations after US Treasury Secretary Janet Yellen’s trip to China early last month. She said China is flooding global markets with cheap goods, particularly in new green industries.
From the perspective of the industrial life cycle, emerging industries often see a surge in investment and capacity expansion as companies vie for market share, the NDRC said, describing this as the “surge” phase, where capacity might temporarily exceed demand.
“As market demand continues to grow and the industry matures, competitive enterprises and superior capacities will excel while less advanced ones will exit the market, sending the supply-demand relationship to automatically resume a dynamic equilibrium,” it said. –The Daily Mail-China Daily news exchange item
