China's new energy production capacity benefits global green development
Recently, some Western media and think tanks have hyped up the fallacy of China's "overcapacity", involving industries such as photovoltaics, wind power, and new energy vehicles. They advocate that China's "overcapacity" will impact the global market, attempting to use this as an excuse for their trade protectionism measures. In fact, the formation of production capacity in China's new energy industry is a natural result of supply-demand interaction, competitive selection, and technological iteration under market economy conditions. From photovoltaics to wind power, and then to new energy vehicles, China's new energy production capacity not only effectively promotes the global energy transformation process, but also provides scarce product supply empowerment and key technological support for green development in various countries.
Market logic accelerates the formation of production capacity
The formation of production capacity in China's new energy industry is jointly created by the two-way regulation of supply and demand, the survival of the fittest in the market, and continuous technological innovation in the operation of the market economy, with a clear market logic behind it.
The formation and evolution of photovoltaic production capacity cannot be judged in isolation from market laws and global industrial division of labor, "said the person in charge of the photovoltaic industry at the China Chamber of Commerce for Import and Export of Machinery and Electrical Products. From the demand side, the global cumulative installed capacity of photovoltaics was about 300 gigawatts at the end of 2016, and reached 2656 gigawatts by the end of 2025. Over the past 10 years, the cumulative installed capacity has increased by more than 2300 gigawatts, with a cumulative growth rate of over 700%. The global energy transition and green low-carbon development have given rise to explosive demand for photovoltaic products. This exponential expansion of demand curve is the fundamental signal for promoting global photovoltaic capacity investment. From the supply side perspective, as market entities, enterprises make independent decisions on investment pace based on price signals, demand expectations, and technological routes, experiencing a complete market cycle of survival of the fittest. In this process, outdated production capacity is naturally eliminated by the market, and advantageous enterprises continue to expand their market share through technological iteration and cost optimization.
The rapid expansion of China's wind power production capacity also follows the logic of marketization, which is the result of industrial chain enterprises matching domestic and foreign demand, especially in China, through large-scale research and development investment. The explosive demand in domestic and international markets stems from the consensus of humanity to address global warming. Vigorously developing renewable energy and gradually reducing the production and consumption of fossil fuels has become a global trend. The person in charge of the wind power industry of the China Chamber of Commerce for Import and Export of Machinery and Electrical Products stated that Germany is a pioneer in the global green energy transformation, and has been implementing grid electricity price subsidies since 1990 to promote the development of renewable energy; In 2000, the Renewable Energy Law was promulgated and implemented, requiring power grid enterprises to purchase renewable energy electricity in full according to government pricing, completely opening up the development space of the wind power industry and driving the large-scale development of the renewable energy industry chain represented by photovoltaics and wind power in the entire EU market. China promulgated and implemented the Renewable Energy Law of the People's Republic of China in 2005, providing guarantees for the rapid development of renewable energy industries such as wind power in China.
After 20 years of efforts, the level of China's wind power industry chain has been comprehensively improved, and it has become the world's largest wind power installation country, the world's largest producer of wind power complete machines and components, and has begun to lead the development of the global wind power industry. Among the top ten wind turbine manufacturers in the world by 2025, China will occupy 8 seats; China accounts for over 75% of the global wind power component production capacity. China's newly added wind power installed capacity has increased from only about 0.1 gigawatts in 2000 to 120.5 gigawatts in 2025, accounting for 73% of the world's newly added wind power installed capacity.
The formation of China's new energy vehicle production capacity follows the market evolution logic of 'domestic super large scale market+technological iteration+full competition', "said the person in charge of the automotive industry of the China Chamber of Commerce for Import and Export of Machinery and Electrical Products. By 2025, China's new energy vehicle production will exceed 16 million units, with sales of 16.49 million units. The domestic penetration rate will break 50% for the first time, and the production and sales volume will rank first in the world for 11 consecutive years. From a global perspective, by 2025, the global production of electric vehicles will be approximately 22 million, with China accounting for nearly 75%. From the perspective of capacity utilization, the international reasonable range for capacity utilization rate is about 73% to 75%. By 2025, the capacity utilization rate of China's industrial enterprises above designated size will be 74.4%, and the utilization of emerging industries will be more fully utilized, resulting in a basic balance between overall supply and demand. The above-mentioned person in charge mentioned that Chinese new energy vehicle companies have been continuously investing in research and development and industrial layout since more than 20 years ago, forming unique technological advantages. This long-term accumulation cannot be created by short-term policy stimulus.
Innovation driven creates competitive advantage
The essence of China's new energy industry standing out in international competition lies in long-term innovation investment and industrial chain synergy, building a dynamic competitive advantage that is difficult to replicate.
The international competitive advantage of China's photovoltaic industry is not a single scale advantage, but a dynamic comparative advantage gradually accumulated through technological innovation, industry chain collaboration, and efficiency improvement in long-term market competition, "said the person in charge of the photovoltaic industry of the Chamber of Commerce for Machinery and Electronics. From the perspective of technological innovation, China's photovoltaic industry has achieved a historic leap from following to leading. The mass production efficiency of N-type TOPCon cells has reached 25.7%, and the localization rate of key equipment has exceeded 98%; China accounts for over 70% of global photovoltaic patents. The establishment of this technological advantage is the result of enterprises continuously increasing research and development investment and promoting technological iteration under market competition pressure. From the perspective of industrial chain collaboration, China has built a complete industrial chain from silicon materials, silicon wafers, solar cells to components, with complete supporting facilities at each link, forming a strong industrial cluster effect.
The person in charge of the wind power industry at the Chamber of Commerce for Machinery and Electric Industry stated that Chinese wind power manufacturers have rapidly developed in the past 20 years relying on the huge Chinese market, and their research and development intensity has gradually increased. In 2005, the industry's R&D investment was only about 210 million yuan, and by 2025, it will increase to 19.68 billion yuan, with the R&D intensity increasing from about 4% in 2005 to about 7% in 2025. This sustained high-intensity R&D investment is the key support for China's wind power industry to move from following and running to leading.
Continuous innovation investment and complete industrial system support have also enhanced the competitiveness of China's new energy vehicles. After years of painstaking research, China's new energy vehicle industry has made breakthrough progress in segmented fields such as drive technology, battery technology, intelligent networking technology, high-voltage charging, and advanced autonomous driving technology. Some technologies have reached or are leading the international advanced level, ensuring the performance and quality of China's new energy vehicles. For example, Chinese companies have launched multiple battery products with high energy density, long lifespan, and high safety, as well as vehicle models equipped with intelligent networking equipment such as solid-state LiDAR, ultra high definition cameras, and millimeter wave radar. Cutting edge vehicle technologies such as intelligent car operating systems, autonomous driving solutions, and smart wearable device interconnection have been mass-produced and installed... The new technology and acceptable value enhancement not only bring users a pleasant experience, but also enhance the product strength of China's new energy vehicles.
China's production capacity supports global transformation
China's new energy production capacity has made significant contributions to achieving the "3060" dual carbon target, and has also provided supply support and technological empowerment for green development in various countries, effectively promoting the global energy transition process and having a profound impact on both developed and developing countries.
China's photovoltaic production capacity provides supply support for the global energy transition. China supplies over 80% of photovoltaic modules to the world. By 2025, the total export value of China's photovoltaic products (silicon wafers, solar cells, modules) will reach 29.45 billion US dollars. Among them, the export value of components was 23.7 billion US dollars, with an export volume of 249.8 gigawatts, a year-on-year increase of 5.7%; The export value of battery cells was 4.5 billion US dollars, a year-on-year increase of 72.6%, and the export volume was 111.2 gigawatts, a year-on-year increase of 90.6%, becoming the fastest growing link; The export volume of silicon wafers was 6.12 billion pieces, a year-on-year increase of 37.8%; The export value of inverters was 9.04 billion US dollars, a year-on-year increase of 9.4%. These data indicate that Chinese photovoltaic products not only meet the demand of the global market, but also help developing countries promote electrification at an affordable cost, break their dependence on fossil fuels, and provide a Chinese solution for the global low-carbon transformation, "said the person in charge of the photovoltaic industry at the China Chamber of Commerce.
The relevant person in charge of the wind power industry of the Chamber of Commerce for Machinery and Electric Industry pointed out that according to data from the National Energy Administration, China's wind power generation in 2025 will be nearly 113 trillion kilowatt hours, accounting for 10.9% of the total electricity consumption in the country. The equivalent substitution of standard coal is about 310 million tons, reducing carbon dioxide emissions by about 820 million tons, making it the third largest main power source after thermal power and hydropower. The rapid development of China's wind power industry has also made important contributions to global wind power technology progress and cost reduction. According to a report released by the International Renewable Energy Agency (IRENA) in 2025, the weighted average cost per kilowatt hour of onshore wind power globally decreased by about 70% from 2010 to 2024, while offshore wind power decreased by about 62%. The person in charge of the wind power industry at the China Chamber of Commerce believes that without the economies of scale in the wind power industry chain brought by China's super large market, the global wind power cost reduction process will be delayed by at least 10 years, and many developing countries' energy transformation plans will be forced to postpone.
New energy vehicles are an important lever for reducing carbon emissions in the transportation sector, and the contribution of China's new energy vehicle production capacity to the global energy transition and economy is reflected in multiple dimensions. In terms of ensuring supply and suppressing inflation, China's exports of new energy products have enriched the global green supply. In terms of technological dividends, the technological breakthroughs in China's electric vehicle industry have provided key support for the global automotive electrification transformation, and European car companies have actively adopted Chinese batteries and intelligent driving solutions to promote electrification transformation.
It is worth noting that China's new energy production capacity has different contributions to economies at different stages of global development, and its empowerment of developed countries is mainly reflected in the consumption and transformation cost aspects. Taking new energy vehicles as an example, China's export of electric vehicles has lowered the average price of domestic electric vehicles in developed countries, accelerated the elimination of fuel vehicles, and benefited the penetration rate of pure electric vehicles in Germany and France. China's new energy production capacity has helped it complete its electrification transformation at a lower social cost.
In contrast, the contribution of China's new energy production capacity to developing countries is more diverse and far-reaching. In the new energy vehicle industry, BYD, SAIC, Geely have built KD factories in Thailand, Brazil, Hungary and other places, increasing the local supporting rate from 0 to as high as 50%. This has not only created a large number of local job opportunities, but also indirectly stimulated logistics, after-sales, finance and other supporting positions in a single overseas factory, directly employing 2000 to 5000 people. At the level of development capability, accessible photovoltaic products help regions such as Africa, South Asia, and Latin America overcome the fossil energy stage, solve the electricity problem of the population without electricity through distributed photovoltaics, and enhance energy sovereignty and sustainable development capabilities.
From photovoltaic modules to wind turbines, and then to new energy vehicles, the growth of China's new energy industry is driven by market demand and the accumulation of technological innovation. These products enter the global market at accessible prices, helping more countries advance their energy transition and lowering the application threshold for green technologies. Whether providing cost-effective clean energy equipment for developed countries or creating employment opportunities and improving energy accessibility for developing countries, China's new energy production capacity is supporting global green development with practical actions. Against the backdrop of countries jointly addressing climate change, this market-based industrial capability is becoming an indispensable component of the global energy transition.