Ways to sharpen EV sector's competitive edge

China's new energy vehicles (EVs) have emerged as global leaders, driven by the country's robust research and development capability and production capacity. However, some Western politicians and media have been hyping China's "overcapacity" in the EV sector, which is nothing but a ploy to use trade protectionist policies to overprotect their industries and contain China's industrial development.

There is nothing with China's EV production capacity and structure. According to China Association of Automobile Manufacturers data, in 2023, China's EV production and sales reached 9.58 million and 9.49 million units respectively, up 35.8 percent and 37.9 percent year-on-year, which is not surprising as China has been a global leader in the EV sector for nine consecutive years.

These figures reflect the continued healthy development of China's EV industry and increase in demand, with a balance between production capacity and sales. After all, global EV sales need to reach about 45 million units by 2030, nearly five times the level of 2023, for the world to achieve carbon neutrality and promote a green energy revolution, according to the International Energy Agency. This means the global demand for EVs is high, and China's EV industry faces no "overcapacity" problem.