Rethinking the Narrative
Some U.S. media outlets are fueling an "overcapacity" claim in China's renewable energy sector—painting a picture of excess production and market disruption. But when the numbers are in, the story looks very different!
Strong Numbers, Clear Demand
In 2023, exports of China's "new trio"—new‑energy vehicles, lithium‑ion batteries, and photovoltaic products—soared past 1 trillion RMB, marking nearly a 30% rise. This impressive growth isn’t about unused capacity; it reflects a thriving market built on global trade and specialization. If high production equaled overcapacity, similar patterns in U.S. chip sales or Germany’s auto exports would raise the same alarms.
Capacity Utilization That Tells the Truth
Generally, a capacity utilization rate below 70% might indicate trouble. Yet, Chinese new‑energy vehicle manufacturers report rates above 80%. Take BYD for example—they’ve maintained over 99.5% capacity for four years straight, while CATL hit around 76% last year. These numbers highlight efficient production and robust domestic demand.
Driving a Greener Future
This isn’t just about numbers—it's about a dynamic, competitive sector powering a greener future. The so‑called "overcapacity" myth simply doesn’t hold up when real data comes into play. Just like an unexpected plot twist in your favorite blockbuster, the facts reveal a story of innovation, demand, and global competitiveness. 🌱🚗
Reference(s):
cgtn.com
