China's new energy industry provides high-quality production capacity that enriches global supply and eases global inflationary pressures, and the world needs more of such high-quality production capacity, the People's Daily said.

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A Chinese state-run newspaper has disputed claims that the country has overcapacity in new energy products, as such narratives gain traction in the Western world.

China's increased exports of electric vehicles, lithium batteries and photovoltaic products are the result of the international division of labor and market demand, reflecting the comparative advantages of China's new energy industry, the People's Daily said in an article today.

The high-quality production capacity provided by China's new energy industry has enriched global supply, eased global inflationary pressures, and promoted the global green and low-carbon transition, the article said.

Globally, such high-quality production capacity is not in surplus but seriously insufficient, and the world needs more such high-quality production capacity, the People's Daily said.

All parties should look at the issue of production capacity objectively and dialectically from the perspective of the market and global vision, and from the perspective of economic laws, so that all countries in the world can benefit from green production capacity, the article said.

The article argued that in today's era, both supply and demand are globalized, and the level of production capacity in different countries is determined by their respective comparative advantages.

China's comparative advantages in areas such as electric vehicles, lithium batteries and photovoltaic products are based on a well-developed supply chain system, sustained technological innovation and sufficient market competition, according to the article.

China is the only country in the world to have all the industrial categories in the United Nations industrial classification, and the size of its manufacturing sector has ranked first in the world for more than 10 consecutive years, the article reads.

China's huge consumer market and rich and diverse car-using environment also provide the soil for the research and development, iterative upgrading of new energy vehicles (NEVs), power batteries and other technologies, the article said.

In terms of technological innovation, after years of practice, core technologies of China's new energy industry continue to progress, the article said.

Take the power battery as an example, China's NEV battery core technology continues to see breakthroughs, from liquid lithium-ion batteries to semi-solid lithium batteries, from blade batteries, Qilin Battery to 800-volt high-voltage silicon carbide platform, the article noted.

In terms of competition, in the NEV industry, for example, China not only has numerous local NEV companies, but also opens its doors to welcome foreign NEV makers, the People's Daily said.

Adequate market competition brings vitality to China's new energy industry, promoting technology iteration, cost reduction and efficiency, thus enhancing international competitiveness, the article said.

Products with international competitiveness are naturally more popular in the international market, the article said.

China's new energy products are in line with the global trend of green and low-carbon transition and are generally of high quality and competitively priced, so they are in short supply in many countries, especially developing countries eager to realize the energy transition, the article reads.

China's NEV ownership exceeds 20 million, 76% BEVs