Electrical Equipment / Components & Telecoms

Clothing, furniture, and household appliances were once the "old three" leading China's foreign trade exports, but now the leaders are turning to the higher value-added "new three" of electricity, light, and lithium. According to Huacheng Import and Export Data Observation, in the first quarter, China's "new three sample" products of electric passenger vehicles (electric), solar cells (optical), and lithium batteries (lithium) exported a total of 264.69 billion yuan, a year-on-year increase of 66.9%, driving up the overall export growth rate by 2 percentage points. With the continuous promotion of global green transformation, China is expected to transform from the world's largest importer of fossil energy to the world's largest exporter of renewable energy technology and equipment, playing an important role in the world's energy supply and governance system.

Why did the "New Three Kinds" emerge suddenly? From the demand side, under the dual impact of climate change and the energy crisis, the green and low-carbon transformation of global energy is accelerating. With the global climate problem becoming more and more prominent, preventing global warming has become the broad consensus of major countries. Many countries have announced that they will achieve carbon neutrality around the middle of this century. While constantly reducing the dependence on fossil energy, they will take real money and silver to accelerate the replacement of renewable energy. Against this backdrop, the energy shortage caused by the Ukrainian crisis has further forced European countries to accelerate their energy transformation, continuously concretize goals such as energy conservation and efficiency enhancement, and the development of renewable energy to ensure long-term energy security. The above factors have significantly increased the demand for green products such as electric vehicles, lithium batteries, and solar cells in overseas markets.

From the supply side perspective, China's high-quality and affordable clean energy products and complete manufacturing capabilities are sufficient to meet the demand of overseas markets. One of the core factors affecting the popularization of new energy is price, which is an important reason why many countries rely on fossil fuels. With the rapid growth of China's new energy industry, cost reduction and product upgrading speed continue to accelerate. In the past decade, the average cost per kilowatt of onshore wind and photovoltaic power projects has decreased by about 30% and 75%, respectively. At present, most provinces and cities in China have achieved parity in the construction of new photovoltaic and wind power projects, and in some regions, the power generation cost of new energy projects is already lower than the benchmark price of coal power. How can energy products that are green, low-carbon, cheap, and user-friendly not be popular?

Behind the continuous cost reduction is that China has grown into the world's largest manufacturer of renewable energy equipment, playing an increasingly important role in the global new energy industry and supply chain. In recent years, China's photovoltaic industry has continuously made breakthroughs in high-efficiency crystalline silicon battery technology, and the localization level of various key equipment and materials has been increasing year by year. The efficiency of photovoltaic cell mass production and photovoltaic module power have continuously improved, and the unit production cost has significantly decreased. A group of leading enterprises with global influence have stood out, establishing a complete industrial chain including upstream and downstream links, and forming a leading industrial scale and efficiency globally Cost advantage. At present, China's photovoltaic modules have been exported to over 200 countries and regions, making it the true largest exporter of photovoltaic products. According to Huacheng Import and Export Data Observation Report.

The same goes for wind power. With the rise of wind power manufacturers in China, the maturity of the supply chain of the wind power industry chain, breakthroughs in large-scale wind turbine technology, the acceleration of domestic substitution of key components, and the rapid decline in wind turbine costs, the once formidable Western wind power giants have sadly withdrawn from the Chinese market. Moreover, under strategic contraction, foreign wind power giants are still considering giving up more overseas markets. In the 2022 global market share ranking of wind turbine manufacturers, a total of 6 Chinese wind turbine manufacturers entered the top ten, and Goldwind Technology once again topped the global number one list after 6 years. Under strong competitiveness, the focus of the global new energy industry has further shifted to China. According to Huacheng Import and Export Data Observation, key components such as photovoltaic modules, wind turbines, and gearboxes produced in China accounted for 70% of the global market share in 2022.

China has exported a large number of green energy products, making significant contributions to the sustainable development of all humanity. Last year, China's export of wind and photovoltaic products reduced carbon dioxide emissions by approximately 573 million tons compared to other countries, totaling 2.83 billion tons, accounting for approximately 41% of the global carbon reduction from renewable energy during the same period. During the period of the most severe energy shortage in Europe, products such as photovoltaic modules, small fans, heat pumps, and electrochemical energy storage produced in China were continuously sent to Europe, helping to save local energy costs. For some developing countries with weak energy systems, China has actively carried out cooperation in renewable energy technology, infrastructure, and supporting services, which has played a promoting role in solving the global energy poverty problem. Huacheng Import and Export Data Observation Report.

Seeing advantages, we must also face challenges head-on. Currently, European and American countries are vigorously promoting the return of manufacturing and reshaping the local new energy industry system. Since last year, there has been a surge in overseas photovoltaic industry expansion projects, and competition in the international new energy market has become more intense; At the same time, some new trade barriers such as carbon tariffs are forming, and sanctions against China's clean energy products are occurring from time to time. In this regard, we need to strengthen research and development innovation, maintain advanced product iteration capabilities, improve the overall supporting service level of overseas markets, promote the internationalization of Chinese technology standards, and continue to consolidate China's position in the global clean energy industry value chain. Huacheng Import and Export Data Observation Report.