People visit the exhibition booth of BYD at an auto show in Xi'an, Northwest China's Shaanxi province, May 1, 2024. [Photo/Xinhua]
The US and China have been recently trading barbs over Chinese electric vehicles (EVs). The US accuses Chinese EVs of overcapacity, claiming they disrupt both the US and global markets and pose risks, including information security concerns. The US has unilaterally imposed a 100 per cent tariff rate on Chinese EVs. China, on the other hand, asserts that its EV industry represents advanced capacity that helps combat climate change and promote global green transition, and accuses Washington of undermining fair and free trade and competition.
The fierce debate between the two major countries mirrors past disputes. Similar to today's EV dispute, there was an incident regarding gasoline-powered vehicles in the early 20th century.
When gasoline-powered automobiles first hit the market, they were costly and produced in limited numbers, making them a luxury exclusive to the wealthy. Ford Motor Company transformed the industry by introducing standardization and assembly line production, which significantly reduced manufacturing costs and boosted production. This innovation led to a substantial decrease in prices, making cars affordable and accessible to the masses. Despite strong opposition from luxury car brands and their interest groups, the Ford Model T, known for its quality and affordability, quickly gained widespread popularity globally. Ford's pioneering production techniques helped the company overcome various challenges, spurred technological advancement and increased revenue across the automotive supply chain. It also revolutionized people's modes of transportation and transformed the automotive industry and related sectors.
Throughout history, similar debates have arisen over emerging capacities, with Ford's automotive revolution being perhaps the best known one. In essence, these debates represent the clash between progress and conservatism, between the advanced and the outdated. In many ways, the history of human civilization is a history of the adoption of advanced capacity.
The popularization and transfer of advanced capacity have often led to clashes with outdated capacity and its interest groups. But not all stories have a happy ending as Ford did.
In the 1980s, Japan's semiconductor industry rapidly expanded its global market share with world-leading manufacturing and design capabilities, posing a significant threat to American semiconductor producers who used to dominate the market. Obsessed with their dominant position, these American companies lobbied the US government to label Japan as setting "structural barriers", and to impose high punitive tariffs on Japanese semiconductors. By inflating the prices of Japanese products, the US firms reclaimed their market share through non-market approaches. Unfortunately, Japan failed to defend its own interests or seek resolution through the General Agreement on Tariffs and Trade (GATT), nor did global buyers unite to support Japan's semiconductor producers. As a result, the advance of the semiconductor industry was stunted, and international trade was used more and more as a weapon, warping the global industrial and supply chains.
Stories of Ford and Japan's semiconductor industry show that current suppression on Chinese EVs is essentially a confrontation between advanced capacity and entrenched interests.
Ford's success proves that advanced capacity is bound to outcompete the outdated forces and gain wider support since it drives industrial advancement and benefits the people. By contrast, the decline of Japan's semiconductor industry tells us that advanced capabilities are likely to be crippled under the pretext of "overcapacity" if no action is taken. Outdated capacity does not phase out naturally. Progress can prevail only through concerted efforts.
Chinese EVs, representing green energy and smart technologies, will help tackle climate change and bring a better life to the people. To better meet demands of people from all countries, more and cheaper Chinese EVs are needed. This also requires us to extend stronger support to Chinese EVs in a more open way. Such support is not for China only, but for every one of us and for human advancement as a whole.
多地多部门走访逾80家深市公司 集中“会诊”破解发展难题 本报记者 田 鹏 在部署走访上市公司工作、推动上市公司高质量发展全国视频会议1月29日召开后，多地紧锣密鼓组织专班调研走访上市公司，深交所作为证券 2023年澳门旅客总消费同比增近三倍 中新社澳门2月22日电 澳门特区政府统计暨普查局22日公布，在入境旅客人次同比上升近4倍的带动下，2023年全年澳门旅客总消费(不包括博彩)比2022年增加近3倍，至712.5亿元(澳门元， 广州一大桥被撞断裂 当地多举措保障受影响民众生活 中新社广州2月22日电 题：广州一大桥被撞断裂 当地多举措保障受影响民众生活 中新社记者 王坚 佛山籍集装箱船“良辉688”轮于22日5时31分左右，在航经广 “药械同追”试点项目助力医疗产品追溯标准化 近日，全国首个GS1“药械同追”试点项目顺利通过中国物品编码中心的验收。该项目是以国际通用的GS1编码标准为基础建设的“药械同追”平台系统，可同时满足我国药品追 福建今年首个核电机组工程开工 中新社漳州2月22日电 (记者 张金川)福建漳州核电3号机组22日开工建设，这是福建今年首台开工建设的核电机组，标志着漳州核电二期工程建设序幕全面拉开。 据悉，此次开工的二期工程 中新经纬2月22日电 据高检网22日消息，近日，中国铁路青藏集团有限公司原党委委员、职工董事、副总经理、工会主席贾军(副厅级)涉嫌受贿罪、行贿罪一案，经最高人民检察院指定管辖，由甘肃省庆阳市人民检察院依法向甘肃省 。本文链接：Chinese electric vehicles: Overcapacity or advanced capacity?http://www.sushuapos.com/show-5-25258-0.html
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