Daily Business Interview with Zheng Yongnian: Global New Energy Development is Just Beginning, the Gap Remains Enormous

The Economic Observer Reporter | Zhang Hong The Economic Observer Editor | Bi Luming

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

Geopolitical tensions are intensifying, bringing new challenges to global energy cooperation. At this critical point of accelerating restructuring of the global energy landscape, it is worth deep reflection on how to create and seize market opportunities in the new energy industry and build a safe, resilient, and sustainable industrial ecosystem.

On-site, Hong Kong Chinese University (Shenzhen) School of Public Policy Dean Zheng Yongnian discussed energy structure and other issues with the Daily Economic News (NBD) reporter.

(Zheng Yongnian responds to NBD questions; photo by Zhang Hong)

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

NBD: How do current geopolitical conflicts impact the reshaping of energy structures?

Zheng Yongnian: I believe China’s energy layout is not only correct but also well-executed.

First, we have successfully diversified traditional energy sources; second, we have also succeeded in developing new energy.

Previously, some conservative U.S. figures denied climate change, disbelieved in an energy crisis, and tried to curb China’s new energy industry development. I think, through the energy issues triggered by the Iran situation, China and European countries can find more common ground and cooperation motivation in new energy development paths, further confirming the correctness of the new energy route. As Tesla CEO Elon Musk said, solar energy is inexhaustible; compared to solar energy, Earth’s internal energy is negligible. Humanity should seek energy from the sun rather than cling to traditional energy conflicts. China’s early development direction was extremely correct.

NBD: Where does China’s new energy technology stand globally?

Zheng Yongnian: In the field of new energy, China is definitely in the first tier. The Trump administration abandoned new energy and shifted to traditional energy partly because the U.S. can no longer compete with China in this field. Looking at the current industry landscape, traditional auto powerhouses like Germany are also shifting. Previously, countries like Germany, the U.S., and Japan relied on traditional energy vehicle industries to establish natural monopolies. Now, during the transition to new energy, they need to seek cooperation with Chinese companies like BYD.

Of course, we shouldn’t be complacent. Other countries are also actively deploying, such as Japan, which is making progress in hydrogen energy and hybrid vehicles. Therefore, China must continue technological innovation. But at the current stage, China’s new energy industry has already firmly secured the top position globally.

NBD: Recently, some domestic companies confirmed Tesla’s plan to purchase Chinese photovoltaic equipment. What do you think is the reason?

Zheng Yongnian: Because it’s inevitable.

First, China is a global leader in the photovoltaic industry. In fact, since the advent of the internet era, the global industrial landscape has gradually been dominated by China and the U.S. From the internet to artificial intelligence and other emerging fields, technological development is mainly concentrated in these two countries, with others participating but with limited influence.

The reason the U.S. has faced obstacles in some areas lies in the large vested interest groups within the country. For years, the international community has been discussing global economic imbalance issues, starting from 2007-2008, and this topic remains unresolved.

Why can’t it be effectively resolved? Because the U.S. tends to blame other countries, but in reality, it’s the domestic vested interest groups blocking reform.

This is why the rise of tech right-wingers is significant. This group represents emerging capital interests, advocating for accelerationism—a philosophy that seeks to reconstruct society through technology—to overcome domestic vested interests and promote industrial transformation. Compared to this, China is one of the few countries with institutional advantages and the capacity for self-revolution.

China has a comparative advantage in AI application deployment

Zheng Yongnian believes that as long as technology doesn’t peak, the economy won’t peak.

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

Zheng Yongnian: All these aspects need coordinated development. Ultimately, technology must be applied. Any technology that cannot be practically applied will eventually become a bubble. Recently, U.S. society has been discussing the risks of an AI bubble. On one hand, every industrial revolution has seen over-investment at its inception; on the other hand, the key is to promote the transformation and application of technology.

The core of AI deployment lies in finding application scenarios, which is China’s advantage. The U.S., on the other hand, lacks comparable advantages in expanding application scenarios.

NBD: Is this advantage due to the large market?

Zheng Yongnian: China not only has a huge market but also a diverse range of application scenarios. Because the U.S. has exited some manufacturing sectors, domestic application scenarios are lacking, forcing it to seek external opportunities. In contrast, China can provide ample application scenarios domestically for AI technology.

Global new energy gap remains large

Regarding “internal competition,” Zheng Yongnian pointed out that, on one hand, China’s new energy industry indeed faces fierce internal competition, or “involution.” But it’s important to distinguish the nature of “involution”: if it manifests as vicious price competition, it should be avoided; if it involves diligent innovation and technological breakthroughs, it is a positive sign.

From the perspective of this energy crisis, the development of new energy worldwide is far from sufficient. Therefore, the key to “countering involution” is to promote capacity “going out” rationally and orderly. During this process, it’s also important to avoid chaos. The government’s focus is not on healthy competition but on preventing a rush-to-market and chaotic development pattern.

NBD: You just mentioned that the gap in new energy is still large. How much do you think the current new energy industry still needs to grow?

Zheng Yongnian: Developing countries have huge demand for new energy, and supply in developed economies like Europe and the U.S. is also far from meeting actual needs. Although the concept of new energy was first proposed by Western countries, their current criticism of China’s “overcapacity” is actually based on ideological bias and competitive disadvantages. From an objective demand perspective, global new energy development has just begun, and the gap remains enormous.

Cover image source: Zhu Yu