China’s excess clean energy production is ‘likely only temporary’, former central bank chief says
- Overcapacity will be absorbed as long as global demand for green transitions stays strong, says former People’s Bank of China governor Zhou Xiaochuan
- Experts at Boao Forum reject Western claims that subsidised products flooding markets give Chinese manufacturers competitive edge
China’s overcapacity in the clean energy sector will be temporary as long as global demand for green transitions holds up, according to two prominent Chinese former economic officials, who said that more market opportunities should be explored through the Belt and Road Initiative.
Last year China saw robust growth in installed capacity and exports of solar panels and wind turbines, as well as blockbuster shipments of electric vehicles and lithium-ion batteries. But Beijing has been facing trade restrictions from both sides of the Atlantic over accusations that cheap Chinese exports are flooding international markets.
Zhou said one of the factors contributing to excess capacity was slow progress in upgrading power grids and installing energy storage facilities.
“Overcapacity is likely only temporary since the world will need to further boost the development of clean energy in the future,” he said.
Zhou also rebutted Western claims that unfair trade practices and state-backed subsidies had been distorting markets for clean energy products.