Global industrial division of labor helps the world develop together – one of the objective and dialectical views on production capacity issues
Technological innovation has ushered in a new era of industries, models, and drivers, rapidly advancing in the global market. China’s export of the “three new types” – electric vehicles, lithium batteries, and photovoltaic products – has showcased its innovative prowess and superior quality. In 2023, these exports surpassed one trillion yuan for the first time, marking a 29.9% year-on-year increase. This not only enhances global supply chains and mitigates inflationary pressures but also garners international acclaim for China’s commitment to green development.
Despite China’s success, some in the United States fearfully label this growth as “overcapacity,” perpetuating a narrative of excess production that is misguided and alarmist. Accusing China of threatening other nations with its robust exports is a reflection of protectionism and unilateral biases, disguising anti-globalization sentiments. It is crucial to view the production capacity issue objectively and dialectically, recognizing the complexities of global trade dynamics.
In an era of economic globalization, the global industrial landscape is interconnected, where supply and demand transcend borders. Each country’s production capacity is shaped by its comparative advantages, with exports playing a crucial role in global market competitiveness. Refuting the notion that exporting more goods signals overcapacity, it is vital to embrace the benefits of international trade and division of labor for mutual prosperity.
The principles of comparative advantage, pioneered by economists like David Ricardo, highlight the mutual gains achievable through international trade and cooperation. As global demand for green products rises, promoting the distribution of high-quality goods through free trade benefits consumers worldwide, fostering technological advancements and economic growth. China’s commitment to free trade and the export of high-quality, affordable new energy products exemplifies the potential for win-win collaborations in global trade.
The development of China’s new energy automobile industry exemplifies the positive outcomes of global industrial cooperation and diversity. Companies like BYD and Tesla, with operations in China, reflect the interconnected nature of industrial supply chains across nations. As economies become increasingly intertwined, cooperation and leveraging comparative advantages are key to achieving mutual prosperity and advancing economic globalization.
Embracing a more inclusive and cooperative approach to international trade and industrial cooperation is essential for nurturing a balanced, sustainable global economy. Engaging in protectionist measures under the guise of addressing overcapacity risks disrupting global supply chains and impeding the green transition of emerging industries. By actively participating in the international division of labor and fostering collaboration, countries can harness the benefits of economic globalization for shared prosperity.
As the global industrial landscape evolves towards diversity, regional cooperation, green transformation, and digital acceleration, it is imperative to reject isolationist policies and prioritize collaborative efforts. Only through enhanced integration into global supply chains and value networks can countries unlock the full potential of economic globalization and pave the way for sustainable development and prosperity for all.