China's premier pushes back on EV, green industry concerns

Chinese Premier Li Qiang speaks during the opening of the "Summer Davos" World Economic Forum in Dalian, in China's northeastern Liaoning province, June 25, 2024.

China’s Premier Li Qiang pushed back Tuesday against criticism that Chinese firms enjoy unfair subsidies and on worries about the state of the world’s second largest economy.

In an address at the opening of the “Summer Davos” World Economic Forum meeting in China’s northeastern city of Dalian, Li talked up the importance of open markets and developing green technologies.

"We cannot slow down our pace in green transition in exchange for short-term economic growth nor practice protectionism in the name of green development or environmental protection," he said.

Li’s remarks come as global pushback grows to China’s EV exports and concerns that it is using cheaper electric vehicles and other green technologies to flood markets from Europe to North America.

The Biden administration announced plans last month to raise tariffs on imports from Chinese made EVs and other clean energy products. The EU is preparing to impose tariffs for electric vehicles starting next month.

Speaking to an audience of political and business elites, Li criticized ongoing trade tensions and what he called decoupling, as he reassured that China’s economy is growing at a rapid pace and on track to attain Beijing's growth target this year of 5%.

Addressing concerns that China is flooding markets, Li said Chinese EVs, lithium batteries and solar panels "first of all ensure domestic demand, while also enriching supply in the international market, easing inflationary pressure on the world and making a positive contribution by China to the global response to climate change."

“The rapid rise of China's new industries is rooted in our own unique comparative advantages," Li said.

China maintains that its advancement in green technologies industries is rooted in early investment and the West is taking unjustified actions by imposing tariffs.