Everyday Economics Interview with Zheng Yongnian: The global new energy development has just begun, and the gap remains huge.

Every reporter｜Zhang Hong Every editor｜Bi Luming

On March 22, the China Development Forum 2026 Annual Conference was held in Beijing.

The intensifying geopolitical game has brought new challenges to global energy cooperation. Standing at a critical moment of accelerated reconstruction of the global energy structure, how to create and seize market opportunities for the development of the new energy industry and build a safe, resilient, and sustainable industrial ecology deserves deep reflection.

At the event, regarding issues such as the energy structure, Zheng Yongnian, Dean of the School of Public Policy at the Chinese University of Hong Kong (Shenzhen), engaged in a dialogue with reporters from the Daily Economic News (hereinafter referred to as “NBD”).

(Zheng Yongnian answers questions from Daily Economic News reporters, photo by Zhang Hong)

China’s energy layout is not only correct but also well-executed

NBD: What impact do current geopolitical conflicts have on the reshaping of the energy structure?

Zheng Yongnian: I believe that China has not only made the right choices in its energy layout but has also executed them well.

Firstly, we have successfully diversified traditional energy sources; secondly, we have also successfully developed new energy.

Previously, some conservative figures in the United States denied climate change and did not believe in an energy crisis while trying to curb the development of China’s new energy industry. I think that the energy issues arising from the situation in Iran can lead to greater consensus and cooperation between China and European countries on the path of new energy development, further confirming the correctness of the new energy route. As Tesla CEO Elon Musk has said, solar energy is inexhaustible, and the energy within the Earth pales in comparison to solar energy; humanity should seek energy from the sun rather than stubbornly competing for traditional energy sources. The developmental direction chosen by China years ago is indeed very correct.

NBD: What tier does China’s new energy technology currently occupy globally?

Zheng Yongnian: In the field of new energy, China is certainly in the first tier. One of the considerations for the Trump administration’s shift from new energy to traditional energy was the fact that the U.S. can hardly compete with China in this field. Observing the current industrial landscape, even traditional automotive powerhouses like Germany are showing signs of shifting. Previously, countries like Germany, the U.S., and Japan established a natural monopoly in the traditional energy automotive industry, but now, during the transition to new energy, they need to seek cooperation with Chinese companies like BYD.

Of course, we should not be complacent. Other countries are also actively laying out their plans, such as Japan’s efforts in hydrogen energy and hybrid technology. Therefore, China must continue to promote technological innovation. However, at the current stage of development, China’s new energy industry has indeed solidified its position in the global first tier.

NBD: Recently, some domestic companies have confirmed Tesla’s plans to procure Chinese photovoltaic equipment. What do you think is the reason for this?

Zheng Yongnian: Because it is inevitable.

First, China is in a leading position in the global photovoltaic industry. In fact, since humanity entered the internet era, the global industrial landscape has gradually evolved into a dominance of China and the U.S. In emerging fields such as the internet and artificial intelligence, technological development is mainly concentrated in these two countries, with other countries participating but having relatively limited influence.

The reason the U.S. faces development obstacles in certain areas lies in the presence of large vested interest groups domestically. For many years, the international community has been discussing the issue of imbalanced global economic structures, and since 2007 and 2008, the consequences of economic imbalance have been a topic of discussion that remains unresolved.

What is the reason for this unresolved issue? Because the U.S. is accustomed to blaming other countries, whereas the real reason lies in the resistance to reform posed by domestic vested interests.

For this reason, the rise of the techno-right holds significant importance. This group represents emerging capital interests and advocates for overcoming domestic vested interests through accelerationism (a philosophy that advocates using technology to reconstruct society) to promote industrial transformation. In contrast, China is one of the few countries globally that possesses institutional advantages and the ability for self-revolution.

China has a comparative advantage in the application of AI

Zheng Yongnian believes that as long as technology does not reach its peak, the economy will not peak.

NBD: Is the endpoint of AI energy, top talent, or application?

Zheng Yongnian: These aspects need to develop in coordination. However, in the end, technology must find practical application. Any technology that cannot be practically applied will ultimately become a bubble. Recently, there has been a discussion in American society regarding the risks of an AI bubble. On one hand, every industrial revolution is inevitably accompanied by a phenomenon of overheated investment at the birth of new technologies; on the other hand, the key is to promote the transformation of technology into practical applications.

The core of AI implementation lies in finding application scenarios, and this is precisely where China’s advantage lies, as the U.S. lacks corresponding advantages in expanding application scenarios.

NBD: Is the advantage due to the large market?

Zheng Yongnian: China not only has a vast market scale but also diverse and rich application scenarios. The U.S., having exited the production and manufacturing of certain products, has led to a lack of local application scenarios and can only seek external application space. In contrast, China can provide ample application scenarios for AI technology domestically.

The global new energy gap remains enormous

When discussing “anti-involution,” Zheng Yongnian pointed out that, on one hand, there is indeed fierce internal competition in China’s new energy industry, known as “involution.” However, it is necessary to distinguish the nature of this “involution”: if it manifests as malicious price competition, it should be avoided; if it reflects diligent innovation and technological breakthroughs, it is a positive phenomenon.

From the perspective of this energy crisis, the development of new energy globally is far from sufficient. Therefore, the key to “anti-involution” lies in how to rationally and orderly promote the “going out” of production capacity. In the process of “going out,” it is also necessary to avoid a rush to enter the market. What the government is focusing on rectifying is not healthy competition, but rather the kind of hasty, chaotic development model.

NBD: You just mentioned that the gap in new energy is still very large. How much of a gap do you think exists in new energy now?

Zheng Yongnian: There is a huge demand for new energy in many developing countries, and the supply of new energy in developed economies such as Europe and the United States is also far from meeting actual needs. Although the concept of new energy was first proposed by Western countries, the current criticism from Europe and the U.S. towards China for “overcapacity” is, in fact, based on ideological biases and competitive disadvantages. From the perspective of objective demand, global new energy development has just begun, and the gap remains enormous.