The West’s concerns over China’s “overcapacity” in clean energy are misplaced, according to a recent Bloomberg report cited by Xinhua on Monday.
The report, penned by columnist David Fickling, argues that the global anxiety over China’s dominance in the clean technology sector is largely unfounded.
Fickling suggests that the rapid growth of China’s wind industry, which has led to lower prices and limited room for other nations to develop their clean-tech sectors, is not a cause for alarm. Instead, he argued that such protectionist views are economically misguided and could hinder the global energy transition.
The columnist further explained that China’s dominance in the wind power supply chain is primarily due to its own demand, making it the only country capable of sustaining the growth of wind energy without disruptions.
Fickling dismissed the recent paranoia over China’s clean-tech ambitions, stating that the hope for a successful energy transition largely depends on the availability of affordable, clean Chinese products.
He emphasised the need for global co-operation in promoting the fourth industrial revolution to overhaul the world’s energy systems. This includes welcoming government support from all countries, including China, the United States, and Europe, instead of instigating harmful trade wars.
Fickling concluded by stating that if the tools to combat global warming are being produced at the scale required, it should not be considered overcapacity. Rather, it is the basic level of capacity that the world needs.
