China’s Premier Li Qiang addressed accusations from the U.S. and EU regarding unfair subsidies and market flooding with cheap green technologies during his speech at the World Economic Forum in Dalian. As China and the EU prepare for technical discussions on potential tariffs on Chinese-made electric vehicles (EVs) and following the U.S. tariff increases on Chinese imports, Li emphasized the self-sufficiency and global contribution of China’s green technology production.
In his opening remarks, Li stated, “China’s production of advanced electric vehicles, lithium-ion batteries, and photovoltaic products initially met our domestic demand and also enriches global supply.” He attributed the rapid growth of China’s new industries to unique comparative advantages and early investments in green technologies.
The increasing protectionist stance of Brussels and its alignment with Washington’s trade policies reflect concerns over China’s production-focused model potentially flooding markets with cheap goods. Beijing has warned the EU about the risk of escalating trade tensions, reminiscent of the trade war initiated by the U.S. in 2018. In response to the EU’s planned tariffs, China has launched an anti-dumping probe into EU pork imports.
Li highlighted the benefits of economies of scale, stating, “The continuous emergence of economies of scale can effectively dilute enterprises’ innovation costs, which is the real source of the strong competitiveness of China’s new industries.” He dismissed the West’s actions as unjustified and emphasized China’s proactive investment in green technologies.
Benoit Boulet, a professor of electrical and computer engineering at McGill University, commented on the sidelines of the summit, noting, “China’s made headway into producing these cars at low cost… it is a lesson for us to try to get our act together and be better at it.” Boulet acknowledged the initial perception of Chinese cars as a threat but anticipated their eventual presence in North American markets.
Chinese analysts have consistently rejected accusations of overcapacity and unfair subsidies, asserting that the recovering $18.6 trillion economy will balance supply and demand more effectively. Li assured delegates of China’s economic resilience, stating, “The rapid growth of new industries and new driving forces has strongly supported and sustained the healthy development of China’s economy.”
Li expressed confidence in achieving the full-year economic growth target of around 5%, highlighting that China’s economy has maintained an upward trend since the beginning of the year and is expected to improve steadily over the second quarter.
As global trade tensions continue to rise, China remains committed to defending its green technology advancements and maintaining robust economic growth.
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