World needs China’s new-energy opportunities, not zero-sum games

Illustration: Liu Xidan/GT

Citing data from the China Passenger Car Association, several media outlets recently carried stories saying that Brazil has overtaken Belgium as the largest export market for Chinese new-energy vehicle (NEV) shipments.

China's NEV sector is in a phase of rapid development, serving as a key piece in the jigsaw for China's burgeoning green economy. The boom in green and low-carbon industries aligns with the global trend of energy conservation and emissions reduction, and it is an integral part of global green energy efforts.

How will the world respond to China's rapid development in low-carbon industries? Reaction has been mixed. Jealous of China's achievements, the US tries to smear China's production capacity and mobilize the West against China's exports. A zero-sum mentality has disturbed the order and atmosphere of international public opinion, and suppressed some people's understanding of the truth.

What is urgently needed is to break the zero-sum mentality and bring global new-energy cooperation back on the right track of globalization. In this context, Brazil's reindustrialization offers a new perspective for people to see global green energy cooperation.

Brazil's government in January unveiled a sweeping reindustrialization plan that will provide credit and funding to the economy. New investment will help to accelerate the process of reindustrialization, but, in the meantime, the country has vowed to step up efforts to reduce carbon emissions. To resolve the contradiction between industrialization and emissions reduction, Brazil is being forced to develop a low-carbon economy.

It means new opportunities for cooperation. China's low-carbon economy has developed in recent decades and the country has made achievements in NEVs, photovoltaic and wind power equipment, industrial energy conservation, low-carbon infrastructure and renewable energy sources. There is great potential for cooperation between the two countries in the field of the low-carbon economy.

Brazilian Ambassador to China Marcos Galvao said in an interview with Chinese media outlets in 2023 that energy is one of the most dynamic areas of bilateral cooperation. He said Chinese companies investing in the fields of solar photovoltaic facilities, wind power projects and hydropower stations have made positive contributions to help Brazil upgrade its power system and ensure power supply for businesses and households.

Bilateral cooperation has entered the fast lane of development. In the first four months of this year, total trade between China and Brazil increased 23.2 percent year-on-year. Brazil recorded a trade surplus with China in the amount of $17.04 billion. The surge in bilateral trade reflects mutual needs and complementarities.

There is no doubt that mutually beneficial cooperation will help inject new dynamism and make new contributions to Brazil's economic growth and reindustrialization.

Of course, trade friction is inevitable in any era. Earlier media reports said that Brazil is set to raise tariffs on electric vehicle (EV) imports as it seeks to encourage local production.

Disputes are normal in international trade. It is believed cooperation between China and Brazil will continue to move forward. Several Chinese automakers have started increasing investment in local production in Brazil. BYD has started building a manufacturing complex there to begin local production by year-end or in early 2025, according to Reuters.

China and Brazil have a promising future in the sector of clean energy cooperation. Galvao said last year in an interview that there would be more good stories in Brazil and China to tell the world.

We sincerely hope that Western countries can adopt an open attitude toward global cooperation on clean energy and demonstrate their support for globalization and free trade. Currently, some Western economies are bowing to trade protectionism, which has resulted in trade friction and fragmentation. However, countries all over the world share common interests in the area of carbon emissions reduction.

As long as Western economies see common interests where we can find synergy to further boost the low-carbon economy, the West and China can find ways to overcome difficulties and achieve win-win cooperation.