"Xi Jinping: Overinvestment in New Energy Will Cause Adverse Effects"

Hong Kong SCMP Report
Remarks at Meeting with Domestic and International Economic Figures

Chinese President Xi Jinping reportedly warned against overinvestment in new energy during a meeting with domestic and international economic figures.

Hong Kong's South China Morning Post (SCMP) reported on the 28th that President Xi said at a symposium held on the 23rd in Rizhao City, Shandong Province, "Excessive investment in new energy will produce adverse effects." The event was attended by overseas investors and domestic and international economic figures.

[Image source=Yonhap News]

According to detailed remarks released by state media such as Xinhua News Agency and People's Daily, President Xi pointed out that focus should not be solely on electric vehicles, lithium-ion batteries, solar power, and the so-called "new three major export products," stating, "We must not just have momentum without substance or gather in crowds only to disperse quickly." He emphasized, "Appropriate measures should be formulated according to the specific conditions of each region to leverage their respective strengths."

Quoting the term "new qualitative productive forces," which he first mentioned last year, President Xi said, "The 'new qualitative productive forces' can also be sufficiently developed through the transformation (innovation) and upgrading of traditional industries." He stressed, "If a company goes bankrupt within a few years of its establishment, the development of modern industry and the cultivation of new productive forces will not be sustainable," adding, "Enterprises themselves must strengthen their internal capabilities."

President Xi's cautionary remarks came amid recent concerns raised by the United States and the European Union (EU) about overproduction issues related to Chinese-made electric vehicles, batteries, solar panels, and wind turbines. Facing increasing pressure from the US and EU, China has rebutted Western claims of "overproduction" targeting the country as "blatant protectionism" and "unreasonable claims that defy common sense."