On March 22, the China Development Forum 2026 opened in Beijing.

As geopolitical tensions intensify, global energy cooperation faces new challenges. At a critical juncture when the global energy structure is undergoing accelerated transformation, how to create and seize market opportunities in the new energy sector and build a secure, resilient, and sustainable industrial ecosystem has become a key issue.

At the forum, Zheng Yongnian, Dean of the School of Public Policy at Chinese University of Hong Kong, Shenzhen, spoke with National Business Daily (hereinafter referred to as NBD) on topics including energy structure.

Zheng Yongnian Photo/website of School of Public Policy at Chinese University of Hong Kong, Shenzhen

China Has Made the Right Moves in Energy Strategy

NBD: How are current geopolitical conflicts affecting the restructuring of the energy mix?

Zheng Yongnian: I believe China has not only chosen the right path in its energy strategy, but has also executed it well.

First, China has successfully diversified its traditional energy sources. Second, it has also achieved success in developing new energy.

Previously, some conservative figures in the United States denied climate change and the existence of an energy crisis, while attempting to curb China’s new energy industry. In my view, the energy issues triggered by the situation in Iran may help China and European countries find greater consensus and cooperation momentum in new energy development, further validating the correctness of this path.

As Elon Musk, CEO of Tesla, once said, solar energy is virtually inexhaustible. Compared to solar power, the energy within the Earth is negligible. Humanity should turn to the sun rather than compete over traditional energy resources. China made the right strategic choice early on.

NBD: Where does China stand globally in new energy technology?

Zheng Yongnian: China is clearly in the top tier globally.

One reason the Trump administration shifted away from new energy toward traditional energy was that the United States could no longer effectively compete with China in this field.

Looking at the current industrial landscape, traditional automotive powers such as Germany are also undergoing a transition. Countries like Germany, the United States, and Japan once held natural monopolies in traditional fuel vehicles, but in the transition to new energy, they now need to collaborate with Chinese companies such as BYD.

Of course, China should not become complacent. Other countries are also actively investing—for example, Japan in hydrogen energy and hybrid technologies. China must continue to push forward technological innovation. But at this stage, China’s new energy industry is firmly in the global top tier.

NBD: A Chinese company recently confirmed that Tesla plans to procure Chinese photovoltaic equipment. Why is that?

Zheng Yongnian: Because it is inevitable.

China leads the world in the photovoltaic industry. In fact, since the advent of the internet era, the global industrial landscape has gradually evolved into one dominated by China and the United States. From the internet to artificial intelligence, technological development is largely concentrated in these two countries, while others play a more limited role.

One reason the United States has struggled in certain areas is the presence of entrenched interest groups domestically. For years, the global community has discussed structural imbalances in the world economy—dating back to 2007 and 2008—and these issues remain unresolved.

Why? Because the United States tends to attribute responsibility to other countries, whereas the real obstacle lies in domestic vested interests blocking reform.

This is why the rise of the “tech right” is significant. This group represents emerging capital interests and advocates accelerationism—the idea of using technology to restructure society—to overcome domestic resistance and drive industrial transformation. By contrast, China is one of the few countries with institutional advantages and the capacity for self-reform.

China Has an Edge in AI Application

NBD: What is the ultimate constraint for AI—energy, top talent, or applications?

Zheng Yongnian: These factors must develop in coordination. But ultimately, technology must be applied in real-world scenarios. Any technology that cannot be applied will eventually become a bubble.

Recently, there has been growing discussion in the United States about a potential AI bubble. On the one hand, every industrial revolution has seen overheating investment in its early stages. On the other hand, the key is to translate technology into practical applications.

The core of AI implementation lies in finding use cases, and this is where China has an advantage. The United States lacks the same breadth of application scenarios.

NBD: Is China’s advantage mainly due to its large market?

Zheng Yongnian: Not only is China’s market large, but its application scenarios are also highly diverse. The United States has exited parts of the manufacturing sector, resulting in fewer domestic application scenarios and a need to seek them abroad. By contrast, China can provide abundant use cases within its own market.

Global New Energy Gap Remains Huge

NBD: How large is the gap in global new energy capacity?

Zheng Yongnian: There is enormous demand for new energy in developing countries, and supply in developed economies such as Europe and the United States is also far from sufficient.

Although the concept of new energy originated in Western countries, accusations that China has “overcapacity” are largely driven by ideological bias and competitive disadvantage. From an objective standpoint, global new energy development is still in its early stages, and the gap remains substantial.