The global electric vehicle (EV) market is rapidly expanding, with China leading the way in production and innovation. However, recent tariff policies imposed by the US and EU have raised concerns about the future of the industry. Chinese Ambassador to South Africa, Wu Peng, expressed his views on the matter during a climate change and just transition workshop organized by the South African Institute of International Affairs (SAIIA) and the Chinese embassy in South Africa.
Wu emphasized the importance of producing affordable EVs for customers and highlighted China’s significant contributions to the renewable energy sector. In 2023, over half of the world’s newly installed renewable energy capacity came from China, with a total investment of US$676 billion. Despite these achievements, the US and EU have accused China of overcapacity in the EV sector, leading to the imposition of additional tariffs on Chinese electric vehicles.
The tariff increases are a result of anti-subsidy investigations launched by the European Commission and the US, alleging that China’s subsidies to carmakers distort the market and flood it with lower-cost EVs. However, Wu argued that no country should be blamed for production capacity in the green energy industry, as green energy production capacity belongs to the whole world. China is also a major producer of solar and wind farm equipment, exporting these products to developed countries to help reduce carbon dioxide emissions.
Wu highlighted China’s investments in Africa’s green energy industry, including projects in Morocco, Egypt, and Kenya. China has signed cooperation agreements on climate change with several African countries, demonstrating its commitment to sustainable development on the continent. Cobus van Staden, a research associate at SAIIA, expects green energy cooperation to feature prominently on the agenda of the upcoming 2024 Forum on China-Africa Cooperation (FOCAC) summit.
Overall, the discussions at the workshop shed light on the importance of international cooperation in promoting green energy and combating climate change. China’s leadership in the renewable energy sector and its investments in Africa demonstrate a commitment to sustainable development and environmental protection. As the world transitions towards a greener future, collaboration between countries will be crucial in achieving climate goals and ensuring a sustainable future for all.