Weekly Update on the International Expansion of Renewable Companies

May 28

Background

Organization Introduction

The U.S.-Asia Sustainable Development Foundation (UASDF) is a non-profit organization dedicated to promoting exchange and cooperation between the U.S. and Asia in sustainable development industries, academia, and policy-making. The foundation has branches in Boston, Massachusetts, San Francisco, California, Shanghai, and Beijing, China.

The foundation aims to promote cross-border exchanges and partnerships, drive innovation, and share best practices to tackle the significant challenges of climate change. By uniting different dynamic regions and stakeholders, our goal is to continue taking impactful actions to build a more sustainable, resilient, and equitable global community. We are committed to ensuring that both current and future generations can live in harmony with the natural world and support a prosperous and environmentally responsible society.

International Development of New Energy Companies

Against the backdrop of globalization and global climate issues, the international expansion and development of new energy companies have become a focal point of heated discussion. Although overseas markets offer broad development space for new energy companies, the presence of policy risks also presents significant challenges to their internationalization process.

Renewable Companies International Expansion Update

In the context of globalization and global climate issues, the international expansion and development of new energy companies have become hot topics. Although overseas markets offer vast opportunities for new energy companies, the existence of policy risks also poses significant challenges to their internationalization process.

Chinese New Energy Vehicles: Leading the Global Market, Facing Fierce Competition

In 2023, Chinese new energy vehicle exports topped the global charts, demonstrating strong competitiveness. As the national sessions of the NPC and CPPCC focus on the development of new energy vehicles, the industry faces new development opportunities. However, market competition has become increasingly fierce, leading to a full-scale price war and a shift from competition for market growth to competition for market share.

In the market competition, the new energy industry shows clear "scale effects" and "Matthew effects." Leading enterprises, leveraging their scale advantages and early market positions, implement low-price strategies to further increase market share. Small and medium-sized enterprises face immense pressure and need to accelerate innovation and technology upgrades to cope with the competition.

To break the deadlock, the new energy vehicle industry needs to accelerate towards "intelligentization," enhance the level of product intelligence, explore international markets, and unearth incremental opportunities. In the long term, China's new energy vehicle development has tremendous potential, supported by artificial intelligence, the digital economy, independent innovation capabilities, and the expansion of international markets and breakthroughs in core technologies.

With the deep implementation of the manufacturing powerhouse strategy and the improvement of the industrial chain, China's new energy vehicles will continue to maintain a leading position and show a broader development prospect.

Rooting Overseas: Leadership of China's New Energy Vehicle Industry and Green Transition

Chinese new energy vehicles are gradually becoming global industry leaders, not only ranking first in production and sales but also demonstrating strong competitiveness in overseas markets. At the United Nations Environment Assembly in Nairobi, Kenya, several experts praised Chinese new energy vehicles, believing that "Made in China" will help the world achieve green transformation and sustainable development goals.

The export volume of Chinese new energy vehicles continues to grow, especially in many African countries, where Chinese-made electric vehicles have become the mainstream of the market. Additionally, Southeast Asian countries such as Thailand and Malaysia, as well as European countries like the UK and Belgium, have actively introduced Chinese new energy vehicles, forming a diversified export pattern.

To better root in overseas markets, Chinese automakers actively build an independent and controllable logistics system. SAIC Motor's first ocean-going car ro-ro ship marks a breakthrough in ocean-going vehicle logistics services for Chinese automakers. Meanwhile, overseas factory construction is also accelerating, with BYD's factory plans in Hungary and Brazil and Changan Automobile's manufacturing base in Thailand, all demonstrating Chinese automakers' determination and strength in global layout.

Apart from whole vehicle exports, the Chinese new energy vehicle industry chain is also accelerating "going overseas." Chinese automakers invest in overseas factories, leverage technological advantages, and conduct in-depth cooperation with local enterprises, promoting the globalization of the new energy vehicle industry chain. At the same time, Chinese companies continuously improve electric vehicle support services in Southeast Asia, optimize the usage environment, and further stimulate consumer demand.

Southeast Asian countries have introduced policies to support the development of the new energy vehicle industry, providing a favorable market environment for Chinese automakers. Chinese automakers are gradually changing their development models from exporting products and services to localizing the production of key components, promoting the deep integration of the new energy vehicle industry chain into the local economy.

The overseas expansion of Chinese new energy vehicles not only enhances the brand image of "Made in China" but also makes a positive contribution to global green transformation and sustainable development. In the future, with continuous technological innovation and market expansion, Chinese new energy vehicles will play an increasingly important role globally.

Ningde Times Chairman Zeng Yuqun: Leading High-Quality Development of New Energy Industry with Innovation, Deepening Global Layout

At the national CPPCC's business federation site, Ningde Times Chairman Zeng Yuqun gave an in-depth interview, elaborating on the company's global market layout strategy and views on high-quality development in the industry.

Zeng Yuqun pointed out that Ningde Times' global market layout adopts a "technology export + engineering service" model, collaborating with local enterprises to jointly develop new energy products. Through technology licensing and engineering personnel services, Ningde Times helps partners master core technologies, jointly promoting the advancement and application of new energy technologies. This strategy not only aids Ningde Times in expanding its global market but also fosters the joint development of the global new energy industry.

Regarding legislation for the private economy, Zeng Yuqun emphasized the importance of innovation for high-quality development. He believes that the state should further encourage disruptive innovation, which can generate new technologies and products leading industry development, serving as the core driving force for high-quality development. At the same time, he called for strengthening the protection of innovative achievements, differentiating between incremental and disruptive innovations, and providing robust support for high-quality innovation.

Addressing the issue of overcapacity in power batteries, Zeng Yuqun noted that overcapacity of low-end production is a phase issue in industry development. He suggested optimizing the industry structure through mergers and reorganizations, eliminating backward capacities, and enhancing overall competitiveness and innovation capabilities. Additionally, he emphasized the significance of high-quality development for the industry, stating that only by continuously improving product quality and technological level can market demand be met and sustainable healthy industry development be promoted.

In the context of the new energy vehicle price war, Zeng Yuqun believes that mere price competition cannot bring long-term industry development. He stressed that high-quality products and services are key to winning the market. By strengthening product innovation capabilities and enhancing new energy vehicles' performance in safety, range, low-temperature performance, and intelligence, real consumer needs can be met, achieving sustainable development.

Zeng Yuqun also mentioned that Ningde Times would continue to increase R&D investment, promoting continuous innovation and breakthroughs in new energy technologies. At the same time, the company will actively participate in global market competition, deepening cooperation with international partners to jointly promote the prosperity and development of the global new energy industry.

In summary, Zeng Yuqun, using Ningde Times' development practice as an example, elaborated on the importance of innovation leadership and high-quality development for the new energy industry. He firmly believes that through continuous effort and innovation, the Chinese new energy industry will occupy an increasingly important position in the global market, making greater contributions to sustainable development for human society.

Regional Challenges: Lagging Sustainable Development Goals in the Asia-Pacific Region

A report released by the United Nations Economic and Social Commission for Asia and the Pacific indicates that the Asia-Pacific region's progress towards sustainable development goals is far from expectations. The report shows that although individual countries have made significant progress in some goals, the entire region still faces many challenges in implementing the 2030 Agenda, particularly in climate action, where the Asia-Pacific region has even regressed. This situation not only reflects deep-seated issues in sustainable development in the region but also brings uncertainty to the development of new energy companies in the area.

Risks and Opportunities: The Dual Tune of Financial Instruments and Legislative Trends

In the internationalization process, new energy companies need to closely monitor market changes, competition patterns, as well as policy directions and legislative changes. The "transition" credit tools explored by HSBC and Standard Chartered Bank, although providing a transformation solution for coal clients, also reflect the policy environment's impact on new energy companies' development. On the other hand, the new directive approved by EU legislators to impose severe penalties for environmental crimes undoubtedly brings greater pressure to new energy companies' internationalization process. However, these challenges also contain opportunities. New energy companies can tackle policy risks and seize market opportunities through innovative financial tools, technological advancement, and strengthening international cooperation.

Summary: Objectively Address Policy Risks, Actively Respond to Internationalization Challenges

New energy companies face complex policy environments and numerous challenges in their overseas expansion and internationalization processes. However, this does not mean new energy companies should give up on international development opportunities. As global climate change issues become increasingly severe, countries are paying more attention to the new energy industry, gradually increasing policy support. This provides good development opportunities for new energy companies. Therefore, while addressing policy risks, companies should also seize policy opportunities, accelerate technological innovation and market expansion, and enhance their core competitiveness. Only then can they remain invincible in the tide of globalization and achieve sustainable development.

The U.S.-Asia Sustainable Development Foundation is grounded in the present and looks to the future, with a focus on the U.S. and Asia while taking a global perspective. By building a vibrant, cross-cultural discussion platform, the foundation is committed to encouraging more youth, politicians, businesspeople, and academics to jointly address climate change and participate in building a sustainable development community.

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This content is sourced from:

Asia-Pacific region to be 32 years late in achieving sustainable development goals at current pace

https://news.un.org/zh/story/2024/02/1126687

Hong Kong launches "ESG One-stop" platform to help SMEs in sustainable development

http://www.gongyishibao.com/html/ESG/2024/02/26534.html

HSBC and Standard Chartered explore "transition" credits for coal clients

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South Finance Forum·Industry Observation | New energy vehicle overseas expansion: winning a larger market with better products

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How do Chinese new energy vehicles "root" overseas?

https://mp.weixin.qq.com/s/WIpR91ps7Iok2tRMNVKcuA