On March 5th, during the first "ministerial passage" at the second session of the 14th National People's Congress, Minister of Science and Technology Yin Hejun mentioned that new energy vehicles, lithium batteries, and photovoltaic modules are referred to as the "new three items" by many. The export growth rate of each of them was very impressive last year.
Recently, the German newspaper "Handelsblatt" published an article titled "With these projects, China is taking the lead in green technology." The article pointed out that "new three items" and other green technologies have brought strong growth momentum to China. In the field of new energy vehicles, although German cars have long been considered an international model of innovation and craftsmanship, Chinese brands such as NIO, BYD, and Wuling have caught up in the field of electric vehicles.
"Handelsblatt" stated that the example of electric vehicles shows that China is surpassing the West in future green technologies. Whether it is hydrogen economy, wind and solar energy, or energy efficiency in production, China is being driven by green technology.
Philip Kupferschmidt, an automotive expert at the German consulting firm A.T. Kearney, stated that compared to German cars, Chinese cars no longer have any quality differences.
China leads the world in green patents
In January, the German Bertelsmann Foundation released a survey report comparing the development of green technology in the United States, the European union, China, Japan, South Korea, and other countries over the past 20 years by counting the number of relevant patents. The report, titled "Green Technology Made in Germany," pointed out that China has rapidly risen over the past 20 years to become a leading country in the field of green technology. Currently, in the comparison of world-class patents, China ranks second, second only to the United States. In terms of research progress, no other country can compare with China.
The data shows that in the past five years, the number of world-class green patents in China has skyrocketed, increasing from 11,000 per year to 37,000. In comparison, Germany had nearly 10,000 world-class patents in 2022.
The report also pointed out that in almost all of the 10 green technology areas surveyed, China's technological level has significantly improved since 2017. These 10 areas include new energy, energy storage, hydrogen fuel economy, energy-efficient machinery, efficient production, environmental materials, and recycling, among others. For instance, in the field of "environmentally friendly consumables and recycling," the number of patents obtained by China has nearly doubled in the past 5 years, accounting for nearly 40% of the global market share and leading the world. In terms of specific technologies, China excels in water purification, battery recycling, as well as the recycling of consumer goods such as cement, plastic, glass, and appliances.
Strategic layout of the "new three items" industry
"Handelsblatt" analysis pointed out that China's soaring number of patents is due to its long-term industrial and research strategies. Introducing and further developing the circular economy has long been an important part of China's economic policy guided by the government's guidelines and investment promotion, the development of the circular economy has increased China's resource productivity.
In recent years, the Chinese government has designated new energy vehicles, lithium batteries, and photovoltaic modules as new drivers of economic growth. This development direction is reflected in China's patent applications, which in turn are reflected in its products and exports. This year's government work report pointed out that in 2023, Shanghai exported "new three items" products worth 167.79 billion yuan, an increase of 42.2%, accounting for 9.7% of the total export value at the same period, increasing the overall export growth rate by 2.9 percentage points.
The article mentioned that the electric car manufacturer NIO is one of the most modern car factories in the world, and its latest models are produced in Hefei. This city has also attracted ambitious students and researchers from all over China.
China is also experimenting with or considering new technologies in urban planning. For example, as early as 20 years ago, there were tram facilities on the east bank of the Huangpu River in Shanghai, laying the foundation for subsequent large-scale rapid development of charging facilities.
Transitioning from contract manufacturing to independent innovation
"Handelsblatt" also mentioned that China intends to turn Hefei, a city of millions of people, into a center for electric vehicles and other future industries. Hefei continues to attract domestic and foreign companies with complete supply chains. This cluster model is a powerful force, firmly rooting Chinese companies in the global supply chain. In the future, Chinese companies will not only be suppliers but also manufacturers of high-tech products themselves.
Currently, Chinese cars are entering the European market. A.T. Kearney predicts that by 2030, just BYD alone will export 1 million vehicles to Europe, almost equivalent to the combined sales of BMW and Mercedes in Europe.
According to patent statistics, China is addressing the next stage challenge of electric vehicles, namely, battery recycling. Automotive expert Kupferschmidt stated, "China has mastered most of the value chain from raw materials to battery technology. Batteries account for about 40% of the vehicle cost. It is also a decisive factor in range and total weight. Whoever masters the technology has a significant competitive advantage. Currently, 6 of the top ten battery manufacturers in the world are Chinese, including CATL, BYD, and Chinalco."
In addition to electric vehicles, the Bertelsmann Foundation analysis pointed out that China's government-supported development focuses on areas such as smart factories, high-speed rail technology, and battery recycling, and may potentially enter and dominate the international market in the future.
