French media: The global green industry should say thank you to China for the benefits | Industrial policy | Renewable energy
French "Echo" article on May 23, original title: Green Industry: We should say thank you to China. A trade dispute over clean technology is brewing. The United States and the European Union are concerned that China threatens their green industries and have imposed or threatened to impose import restrictions. At the same time, China has also condemned to the World Trade Organization relevant provisions in US President Biden's "Inflation Reduction Act" that discriminate against Chinese products.
China has developed green industries at an alarming rate and now manufactures nearly 80% of the world's solar photovoltaic modules, 60% of wind turbines, and 60% of electric vehicles and batteries. In 2023 alone, China's new solar power generation capacity will be That exceeds the total installed solar capacity in the United States.
There are big differences between these industries and traditional industries such as steel: green technologies are crucial in fighting climate change, and the only way to decarbonize the planet without hurting economic growth and reducing poverty is to switch to renewables as quickly as possible Energy and green technology, making it a global “public good”.
China’s reasons for supporting the development of green industries are irrefutable. The emergence of new technologies often brings expertise and other positive externalities, and because knowledge spillovers cross national borders, China's approach benefits not only global consumers but also foreign companies throughout the supply chain. In addition, we must take into account the enormous costs of climate change, as well as the vast potential benefits of accelerating the green transition.
Ideally, the world should implement a global carbon tax. There are currently some regional, national and sub-national systems implementing carbon taxes, but still only a small proportion of carbon emissions are priced close to the true social cost of carbon. In this case, green industrial policy has the dual advantage of stimulating technology diffusion and replacing carbon pricing. Western commentators who use alarmist terms such as "overcapacity," "subsidy wars" and "trade shocks" do not understand that combating climate change requires large amounts of renewable energy and green products.
China’s green policies have driven some of the world’s important climate victories so far. The cost of renewable energy has continued to fall over 10 years as Chinese manufacturers expand capacity and take advantage of scale, with solar power costs down 80%, offshore wind down 73%, onshore wind down 57% and batteries down 80%. It’s these developments that underpin growing optimism in the climate community.
Of course, countries have other interests to consider besides climate, and may be worried about the impact of competitors' offensive industrial policies on their country's employment and innovation capabilities. They could impose countervailing duties on imported products if they believe the costs outweigh the benefits to the climate and consumers. But it would be better for the world if they did not react in this way. The government should avoid arbitrarily accusing green industrial policies of harming international rules. Ethical, environmental and economic arguments should all be made in favor of countries that help green industries, rather than those that think of taxing other countries.
