UN official dismisses allegation of 'overcapacity' in China's green industries as misplaced
The allegation of overcapacity in China's green industries by the United States is misplaced, a senior official from the United Nations Economic Commission for Africa (UNECA) has said.
"The fact that buyers still desire Chinese electric vehicles (EVs) suggests that the global market is not saturated yet and the assertion of overcapacity in China may be misplaced," Eunice Kamwendo, director of the UNECA Sub-Regional Office for Southern Africa, told Xinhua in a recent interview.
She made the remarks in response to assertions of "overcapacity" in China's flourishing green industries made by U.S. Treasury Secretary Janet Yellen during her recent visit to China.
Instead of blaming China for "industrial overcapacity," the United States must play to global trade rules, Kamwendo said in her e-mailed response to Xinhua from Zambia where the UNECA Sub-Regional Office for Southern Africa is located.
Chinese manufacturers "appear to have gotten a headstart, not least because of the aggressive investments made in their domestic market starting in 2009 and 2010, when many other countries were slow to develop their EV industries," she said.
China's competitiveness in its green industries' productive capacities had resulted in its EVs priced relative to their production costs, taking advantage of the increasing appetite for EVs globally, Kamwendo said.
Noting that European Union countries, in particular, are accelerating the transition to EVs at a cheaper price, Kamwendo said China has been able to meet this demand and fill the gap.
"Undoubtedly, the United States would like a share of the lucrative EU EV market. It needs to compete," Kamwendo said.
The UN official added that the rising global demand for Chinese EVs suggests that global supply is still insufficient, and instead of complaining, the United States should beef up its game to effectively compete.
Kamwendo said industrial capacity of any goods, including green energy products, fluctuates throughout the production cycle over time.
"If productive capacity is between zero and 100, and a firm stands at 80 percent in April but the domestic economy can only absorb 50 percent, companies will seek to export the remainder capacity into the global market. This is trade," she noted.
"Does that make the practice overcapacity? In economic terms, no," Kamwendo said.
She said China is a powerhouse with quick, cheap industrial capacity, which is very competitive, with a cost-effective supply chain which allows it to lead in global EV sales.
"Indeed, China's experimentation in adjacent industries, innovative technological solutions and proximity to green mineral supplies, has enabled it to leapfrog competition," Kamwendo said.
Related articles
The Office star Mindy Kaling reveals whether she will be reprising her role as Kelly Kapoor in spin
Mindy Kaling has revealed whether she would consider returning to the role of Kelly Kapoor for the n2024-06-03Justin Bieber gifts pregnant wife Hailey HUGE new diamond sparkler for their vow renewal
Justin Bieber has gifted his pregnant wife Hailey a huge new diamond ring for their vow renewal.The2024-06-03Ohio attorney general must stop blocking proposed ban on police immunity, judges say
Federal judges ordered Ohio Attorney General Dave Yost to stop blocking a measure that asks voters t2024-06-03Hayden Hopkins' baby daddy 'is revealed as an MLB star'
Cirque du Soleil dancer Hayden Hopkins is having a baby with a Major League Baseball star, not Las V2024-06-03Sarah Hyland reveals husband Wells Adams called her Little Shop of Horrors voice 'very sexual'
Sarah Hyland said she was surprised by her husband's reaction to her latest Broadway role. The Moder2024-06-03Blinken assails Russian misinformation after hinting US may allow Ukraine to strike inside Russia
PRAGUE (AP) — U.S. Secretary of State Antony Blinken on Thursday assailed Russian attempts to sow di2024-06-03
atest comment