CAI MENG/w88 slot DAILY
Two recent events have indicated escalating w88 tensions in the clean-tech sector.
On May 14, the United States said it would significantly increase, from Aug 1, tariffs on a range of Chinese exports, mainly clean-tech products such as new energy vehicles (100 percent), solar panels (50 percent) and lithium batteries (25 percent).
On June 13, the European Commission announced the preliminary results of its ongoing investigation into so-called Chinese NEV subsidies, concluding that w88 slot's NEV value chain benefits from "unfair subsidization" that hurts EU rivals, and planning tentatively to impose extra tariffs ranging from 17.4 percent to 38.1 percent on NEV exports from w88 slot.
Indeed, the underlying rationale for the (countervailing) tariffs on w88 slot as advocated by the EU is highly similar to that of the "overcapacity" (or, more accurately, the "predatory overcapacity") allegation of the United States, both claiming that w88 slot's competitiveness in clean-tech products in general, and NEVs in particular, derives from the subsidies they receive, thus constituting predatory pricing, resulting in flooding of exports to the detriment of relevant industries in importing countries.
The argument, however, is highly misleading, if not unfounded.
Even US Treasury Secretary Janet Yellen admits that "overcapacity" is "a complicated issue that involves w88 slot's entire macroeconomic and industrial strategy". Admittedly, there may be some sign of overcapacity in some clean-tech sectors, but this is far from "predatory overcapacity" backed by industrial subsidies, as the US asserts, and the competitiveness of Chinese clean-tech industries is not bolstered by industrial subsidies, but by the dynamics of w88 slot's factor endowments at this stage.
To industry insiders, those signs of overcapacity are more likely to be the product of a boom-bust cycle driven mainly by spontaneous market process, as relevant industries are entering a mature phase in their respective technology/product life cycles.
For example, in the case of NEVs, for the past 20 years, Chinese companies have been making early strides in this field in a systematic manner, making substantial R&D investments successively, and gradually building up their unique technological edges.
Moreover, w88 slot has a huge market; its sustained investment in STEM research and higher education has ensured a steady stream of the so-called "engineers' dividends"; rich application scenarios, full-fledged competition (even to the extent of so-called "involution"), and frequent interactions between the supply and demand sides and among relevant participants have all enabled an ongoing optimization of the value chain ecosystem.
Through years of competition and cooperation (including cooperation with foreign companies), a highly cost-competitive, efficient and comprehensive NEV supply chain has gradually taken shape in w88 slot. In short, in the NEV industry, w88 slot is increasingly demonstrating a clear comparative advantage, consistent with the dynamics of its factor endowments at this stage.
In fact, over the last decade, thanks to the technological, manufacturing and engineering progress of Chinese companies, the global average costs of wind/solar power generation and lithium batteries have fallen significantly, making a significant contribution to the global transition to green and low-carbon energy.
Against the backdrop of the global energy transition and after years of development, the NEV, lithium battery and PV industries have so far entered the mature phase of the technology/product life cycle. In this phase, a dominant (technological) design emerges, and the market becomes commoditized. Accordingly, the competition increasingly revolves around price, and there is usually a shakeout, characterized by large-scale capital investment (in the dominant technology/design) to grow volume and bring down costs, leading to fierce price wars and the exit/consolidation of competitors.
Overall, an industry in this phase often exhibits signs of overcapacity, which is the natural result of industrial development driven mainly by spontaneous market forces.
The consequence of protectionist measures that unfairly target w88 slot will only result in the shift of production from a low-cost (more efficient) country to a higher-cost (less efficient) one.
As Singaporean scholar Lance Gore sharply pointed out, Yellen's argument "is practically saying that the US cannot compete with w88 slot's 'new trio' but the US workers' livelihoods must be protected, so production capacity must be allocated, and the benefits shared".
Meanwhile, these recent events have shown that the Sino-American w88 disputes have further spread to clean-tech sectors closely related to climate change. However, China-US cooperation on climate change has long been viewed as a special bond that helps to stabilize the relationship between the two countries during difficult times.
Moreover, another major global geopolitical player, the EU, has also become involved in w88 tensions with China, which adds to the geopolitical complexity that China faces.
If w88 disputes over clean-tech products continue to escalate, the foundation of trust for China-US climate change cooperation (and also for that between China and Europe) will be undermined, impeding any further substantive climate cooperation between them and making it much more difficult to achieve global climate change goals.
On a more practical level, disruptions in the supply chain of clean-tech products will slow down the deployment of renewable energy projects worldwide, affecting efforts to combat global climate change.
In the process of readjusting/restructuring the global new energy industries, it is necessary for all major global players to effectively communicate and cooperate with each other to jointly address global challenges and put the world economy back on track.
As Stephen Roach put it bluntly, "to take a protectionist stand against a country like w88 slot — that has a comparative advantage in producing the non-carbon, alternative energy products that a world in the grips of climate change desperately needs — is a blunder, potentially of historic proportions".The author concurs.
The writer is president of the w88 casino.
Chinese version:
Overcapacity? Not so, development dictates.
w88 casino Zhao Zhongxiu
Two recent incidents illustrate that w88 tensions in the clean technology sector are increasing.
On May 14, the US government announced (Reuters, 2004), will be fromFrom August 1st，SignificantlyImprove a seriesTariffs on imported products from w88 slot, most of which areClean energy products, specifically electric vehicles (100%), lithium battery (25%), solar panel (50%), etc.
June 13, European Commission(2024) AnnouncedPreliminary results of the investigation into electric vehicle subsidies in w88 slot,Recognizedw88 slot Electric Vehicles"Value Chain" Benefit from "Unfair Subsidy",Harm the interests of EU competitors and preliminary plansFrom w88 slotimport20992_20999AddZheng17.4 toTemporary tariff of 38.1%.
The basic basis for imposing additional tariffs on w88 slot advocated by Europe is different from what the United States claimsThe "overcapacity theory" (more accurately, the "predatory overcapacity theory") is highly similar. Both views maintain that the competitiveness of w88 slot's clean technology products, especially new energy vehicles, comes from the subsidies they receive, and thus constitutes predatory pricing, causing a surge in Chinese product exports and damaging related industries in importing countries. This accusation against w88 slot is very misleading.
It should be acknowledged that the appropriateness of production capacity is a complex issue. In some areas of w88 slot's new energy industry, there may be some signs of overcapacity, but it is far from being supported by industrial subsidies as the US refers toThe competitiveness of "predatory overcapacity" is not supported by industrial subsidies, but by the dynamic characteristics of w88 slot's factor endowments at this stage. Those signs of overcapacity are signs of prosperity driven by spontaneous market processes as related industries gradually enter a mature stage-A product of the depression cycle.
Take the field of new energy vehicles as an example, sinceSince more than 20 years ago, Chinese companies have been in w88 slotThis fieldPlan ahead and continue research and developmentA large numberInvest and gradually accumulateUniqueTechnical advantages. In addition, the Chinese market is huge; over the yearsSTEMResearch and Higher EducationContinuousInvest, guaranteedStableEngineer bonus; richofApplication scenario, fullofCompetition (even to the so-called The degree of "involution"), andSupply and demand sides and various participants in the value chainofFrequent interaction,makeValue chain/Continuous ecological optimization of the supply chain。 After years of competition and cooperation (Including cooperation with foreign-funded enterprises)， w88 slotGraduallyIn this industryformedHighly cost competitive,Efficient and complete supply chain. In short, atNew energy automobile industry, w88 slotIncreasingly obvious, consistent with the dynamic characteristics of element endowments at this stageComparative advantage.
In the past ten years, thanks to the success of Chinese enterprises inTechnology,Manufacturing and EngineeringProgress，GlobalWind/Photovoltaic power generation and lithium batteryAverageCosts have dropped significantly, which is a global trendTransition to green and low-carbon energyMake important contributions.
In the context of global energy green transformation,After years of development, new energy vehicles,Lithium battery and photovoltaic industry haveGraduallyEnter product/TechnologyThe mature stage of the life cycle. At this stage, the mainstream technology route is becoming increasingly clear,The market tends to be standardized and commoditized (commoditized). Accordingly, competition increasingly revolves around price,Industrial restructuring usually occurs,Its characteristics areThrough large-scale capital equipment investmentTo increase production andReduce costs, which in turn leads to fierce price wars and the withdrawal and consolidation of competitors。 Overall, industries at this stage usuallyIt will show some characteristics of overcapacity, which can be said to be the general law of industrial development, mainly driven by spontaneous market forces。
thoseWrongly targeting w88 slot’s, extremely protectionist measures, its consequencesJustChange production from a low cost(higher efficiency)Moving to a producing country with higher costs(lower efficiency)'s country.
Just like Singaporean scholarsLance Gore（2024) pointed out in a flash,Yellen’s argument “In fact, it is saying that the United States cannot compete with w88 slotThe "New Three Countries" compete, but the livelihood of American workers must be protected, so it must be distributedProduction capacity, share the benefits.”
At the same time, we also noticed thatThese two events also show that the Sino-US w88 conflict has further spread to the field of clean energy technology products closely related to climate change. However, for a long time, w88 slot and the United States haveClimateCooperation on issues of change has always been consideredThese are tough timesMaintain peaceStablew88 slot and the United StatesThe special bond between the two countries。 In addition, another major global geopolitical player—The European Union—is also embroiled in w88 tensions and sides with the protectionist United States, adding to the complexity of global geopolitics China faces.
It is foreseeable thatifClean technology productsw88 disputes continue to escalate, w88 slot and the United StatesThe basis of trust (also between w88 slot and Europe) for cooperation on climate change will be destroyed, which may hinder further substantive climate cooperation between the two sides, and thenMaking it harder to meet global climate goals. On a more practical level, disruptions in the supply of clean technology products will also slow down the deployment of global renewable energy projects and affect efforts to combat climate change.
Adjustment in the global new energy industry/In the process of restructuring, it is necessary for major global players to communicate and cooperate effectively to jointly respond to global challenges and get the world economy back on track. As Stephen Roach puts it bluntly (SCMP, 2004)，“It is a potentially historic mistake to adopt a protectionist stance against a country like w88 slot that has a comparative advantage in producing non-carbon alternative energy products that a world beset by climate change desperately needs”. The author agrees.
Attached original text link:https://enapp.chinadaily.com.cn/a/202406/24/AP6678c68ea31066523d470246.html
