Science and Technology Daily: Sustainable Prosperity Requires Consensual Cooperation

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Oct 02, 2024, 02:17 ET

BEIJING, Oct. 2, 2024 /PRNewswire/ -- Is global warming accelerating? That is a question frequently debated by researchers and industry insiders.

"An undeniable fact is that the temperature in the world is indeed rising. However, what is even more urgent to deal with is the instability of the climate conditions," said Steven Chu, an American professor at Stanford University.

The 2024 World New Energy Vehicle Congress (WNEVC), held from September 27 to 29 in Haikou, Hainan, the island province in south China. (PHOTO: VCG)

Chu was speaking by video at a plenary session of the 2024 World New Energy Vehicle Congress (WNEVC) held in Haikou, Hainan, the island province in south China, from September 27 to 29.

In recent years, the impact of climate change has intensified, leading to increased extreme weather events. This has made achieving carbon neutrality more pressing than ever.

The 2024 WNEVC echoed the 2019 session, which had proposed that the proportion of new energy vehicles (NEVs) in the world reach 50 percent by 2035.

The world NEV market has witnessed a breakthrough in achieving this goal, with many countries promoting NEVs. According to Hou Fusen, secretary-general of the China Society of Automotive Engineers, in the first half of 2024, global NEV sales reached a new height of more than seven million units. It signified a year-on-year increase of 23.1 percent, and the market penetration rate exceeded 17 percent.

"China plays a crucial role in a successful transformation towards electromobility and digitalization," said Hildegard Mueller, president of the German Association of the Automotive Industry.

To meet the goal, China has put its money where its mouth is. The government has released several policies to boost the domestic development of the NEV sector, and Chinese NEV enterprises have expanded the overseas market.

Risk of trade conflicts

But despite the progress, in 2024, the global auto industry has seen a rise in deglobalization sentiment. "An example is the EU's anti-subsidy investigation into EVs imported from China, " Mueller highlighted.

In addition, some countries and regions are restricting the import of NEVs from other countries by imposing higher tariffs and setting technology standards. "It is a fundamental truth that any protectionist measure restricts free trade. It carries the risk of trade conflicts," Mueller said.

"The uncertainty and risks brought by this kind of trade protectionism measures are increasing, " said Gan Jiayue, CEO of Geely Auto Group. He said the European Union's additional tariffs on China's electric vehicles will hurt Europe's interests and hinder its development.

For the EU, imposing anti-subsidy tariffs is not an answer to the challenges facing the European automotive industry. Rather, it could easily escalate into a new trade conflict, sparking a spiral of protectionism. As China plays a major role in green transformation, the potential trade conflict with China will jeopardize global e-transformation, Mueller said.

Cooperation the main tone

The automobile industry is the most globalized industry in the world. Globalization should be driven by openness and cooperation, said Ling Ji, Chinese vice minister of commerce, and China's deputy international trade representative.

For any country and region, any market and any industry, what's needed is an active industrial strategy. Europe in particular must ensure that the conditions for business are improved. It is about lower energy prices, fewer taxes and levies, and, above all, less red tape. It needs to be backed by a proactive trade policy. This is the sole path to unleashing the immense innovative potential within the NEV industry, Mueller said.

Lewis Neal, British trade commissioner for the Chinese mainland and Hong Kong Special Administrative Region, said the stakeholders, whether industry insiders, researchers or policymakers, should work together to expand the NEV market. Only through openness and collaboration can innovation be accelerated, leading to the ultimate goal of carbon peaking and carbon neutrality.

As the global transformation towards NEVs continues and the need for new technology standards and cross-border data flow rises, cooperation should be intensified, Mueller said. She urged all countries to focus on the development of the NEV industry. Although there are challenges to multilateral cooperation, dialogue and cooperation remain the only way and should be the main tone to overcome all odds.

Stakeholders needed for transformation

"China has been promoting the development of NEVs for more than 20 years. We know that in the global automotive electrification transformation, the pain points, difficulties and bottlenecks faced by various countries are becoming increasingly prominent. However, I always believe that communication and cooperation are still the general trend of the global automotive industry," said Wan Gang, president of the China Association for Science and Technology and also president of the WNEVC at the 2024 plenum.

"I hope that the automotive industries in China and abroad and the departments of various countries communicate with each other, enhance mutual understanding and trust, deepen pragmatic cooperation, and achieve mutual benefit and win-win results, " he said.

Global R&D, production and procurement are important ways for the automotive industry to synergize global resources and achieve economies of scale.

"Given the significant resources required to deliver green transformation solutions, collaboration among industry players is imperative because limited resources and advanced technologies are globally dispersed, making partnering and cooperating even more important than ever before," Mueller said, adding that new technologies can activate more potential and help reshape the future of the auto or the entire transportation industry.

But auto electrification still has a long way to go as the global NEV infrastructure is still weak, she pointed out. She commended China's efforts to use hydrogen and renewable fuels for commercial vehicles, which have motivated other market players to follow suit.

Jochen Goller, a member of the BMW's management board, echoed these sentiments. He emphasized that an open market is an important driver for innovation. He welcomed Chinese auto enterprises to set up branches in Europe, and said he expects to collaborate with stakeholders in pursuing low-carbon development.

Climate protection is a global effort. Sustainable development, which is also for future generations, can succeed only if all groups involved work together. As Wan said, only through negotiation and dialogue among all stakeholders can there be a fair, transparent, open and non-discriminatory international automotive trade and investment environment. Only through the coordination of green and low-carbon development can a positive contribution be made to realize the United Nations 2030 Sustainable Development Goals as scheduled.

SOURCE Science and Technology Daily