We wish to provide Nepal with valuable experience related to sustainable development and advanced science and technology, and we hope to work together with the Nepali side to jointly promote green development and energy transformation.

The United States and other Western countries have been using the term “overcapacity” with the intention of suppressing China’s scientific and technological development as well as its growing production capabilities. They claim that due to excessive government subsidies in the new energy sector, China’s electric vehicle production capacity has exceeded actual demand.

To utilize this so-called excess production capacity, China is selling its products in foreign markets at lower prices. Such claims do not align with reality. Sustainable development is a shared global goal. Renewable energy has already become a key term in global discourse. Leaders from Western countries, along with others, have been calling for a gradual transition from fossil fuels to a green economy.

The fact that the United States and other Western countries have once again adopted a “double standard” in this matter reveals their narrow-mindedness and highlights the sluggish pace of their actions in this field. In contrast, China has firmly upheld its climate-related commitments made at international forums, rapidly advancing its production capacity and energy transition, thereby presenting itself as a responsible major nation and a defender of the shared interests of developing countries.

(1) The need for green energy is immense. Low-carbon green energy transformation is essential to mitigate climate change. As long as there remains the possibility of reducing carbon emissions, the world must consider green production capacity to be insufficient.

It is not in excess of what is needed. Political figures in the United States and other Western countries have used the claim that China’s new energy production capacity is excessive as an excuse to launch a “tariff war.” In reality, faced with economic imbalances in their own countries and a declining competitive edge in international markets, they are merely trying to make China a scapegoat.

The International Energy Agency has made projections based on global labor division and international market dynamics. By the year 2030, the global demand for new energy vehicles is expected to reach 45 million units - 4.5 times the demand in 2022. The demand for photovoltaic equipment is projected to reach 820 gigawatts.

This will be four times the demand in 2022. The current level of international production capacity is far from meeting market needs. Considering the fact that demand remains very high even now, it will still take a long time before China’s production capacity in the new energy sector exceeds actual requirements.

(2) China’s science and technology will bring prosperity to the world. Former UN Under-Secretary-General Erik Solheim stated that China’s affordable solar panels provide a green path toward prosperity for developing countries.

Throughout world history, every country previously relied on fossil fuels to develop their economies. However, thanks to efforts by Chinese solar energy companies like Tongwei and LONGi, the cost of solar energy has decreased by 90 percent compared to ten years ago. This is a golden opportunity for global climate action and the sustainable economic development of developing countries. The United States and other Western countries should view China’s leadership in the green industry not as a threat, but as a powerful engine driving worldwide energy transformation.

(3) The need for international cooperation is rapidly increasing. Nepal has become one of the fastest-growing markets for electric vehicles. By replacing petrol- and diesel-powered vehicles with those running on green energy, Nepal will gain three types of benefits - air pollution will decrease, capital outflow will reduce, and energy efficiency will improve.

Currently, Chinese electric vehicle factories in countries such as Indonesia, Thailand, and Turkey are helping to upgrade local production levels and support energy transformation. According to United Nations data, developing countries will need approximately 1.7 trillion US dollars in annual investment in the renewable energy sector. However, in 2022, only 544 billion US dollars were invested worldwide. To address this investment gap, we must seek creative solutions rather than resorting to protectionism and trade barriers.

China is always ready to walk the path of low-carbon development and green cooperation. In 2024, 40 percent of China’s electricity was generated from new clean energy sources. As the world’s largest exporter of clean technology, China has created 46 percent of the global employment opportunities in the renewable energy sector.

According to the report by the International Renewable Energy Agency, over the past 10 years, the cost of electricity production per unit for wind power projects worldwide has decreased by 60 percent. The production cost for photovoltaic projects has decreased by 80 percent. The main credit for this goes to China.

In May of this year, Nepal successfully organized the Sagarmatha Dialogue. Leaders from various countries and scholars from think tanks gathered at the foothills of the Himalayas to discuss how developing countries, including Nepal, can address climate change, achieve carbon reduction targets, and build a sustainable and bright future for humanity.

China is a long-term development partner and neighboring country of Nepal. We wish to provide Nepal with valuable experience related to sustainable development and advanced science and technology, and we want to work together with the Nepalese side to jointly promote green development and energy transformation.

There is no justification for the United States and other Western countries to suppress the development of the green industry in China and other developing countries. Therefore, instead of just building high walls, the international community - especially developing countries - should be aware that increasing the cost of technology to access renewable energy would create obstacles to global green low-carbon development.

China wishes to collaborate in green science and technology with all countries, including Nepal, that seek to develop clean energy, to face the common challenges of humanity and realize global climate goals. China’s renewable energy capacity is by no means excessive; rather, it is a positive message for the world.

Source: Kantipur