TOKYO, May 9 (Xinhua) -- "There's no such thing as overcapacity," Tang Jin, a senior researcher at Japan's Mizuho Bank, told Xinhua in a recent interview, highlighting the global consensus and trend towards green and low-carbon pursuits, as well as the burgeoning development of electric vehicles worldwide.

Tang pointed out that among about 90 million units in annual global sales of new cars, around 30 million are sold in the Chinese market, with a demand for 60 million new cars in overseas markets.

Citing the 10-percent market share of electric vehicles (EVs) as of 2023, the researcher said that labeling this percentage as "overcapacity" is unjustified.

Also a renowned expert in the automobile sector, Tang noted that the "overcapacity fallacy" emerged as China's EV industry strongly innovated itself and responded quickly to the market.

With its strong technological advantage and leading market share in battery and electronic products, China has forged a comprehensive industrial chain advantage in electric vehicles, Tang said.

The rapid pace of China's EV development has made it challenging for traditional auto companies in the United States and Europe to compete using their existing industrial chain advantages, said the researcher, adding that traditional U.S. car manufacturers saw their global market share decline.

"The so-called 'overcapacity fallacy' thrown by the United States is only to safeguard its own interests, and the purpose is to curb China's development momentum and put itself in a more favorable position in the game," Tang noted.

The rise of China's EVs, lithium batteries, and photovoltaic products, seen as threats to traditional industries, is inevitable to encounter headwinds. U.S. officials, when bringing up the "overcapacity fallacy," specifically pointed out the subsidy issue.

Tang highlighted that various countries subsidize the green and low-carbon industry to achieve carbon neutrality goals. While China phased out subsidies by the end of 2022, the United States and Japan continued to provide subsidies for EVs. However, he emphasized that these subsidies are not the decisive factor in China's rapid improvement in EV competitiveness.

Citing Chinese automaker BYD as an example, Tang noted that BYD's rise is largely attributed to its vertical integration strategy and self-produced core components, leading to significant cost-effectiveness and technological advantages, the researcher noted.

He also emphasized the importance of good after-sales service, which ultimately translates into BYD's product strength and brand influence.

Stressing that China's EV industry has undergone years of development and is now a fiercely competitive market, Tang said that competition has helped China build a globally competitive EV industrial chain.

"If you study China's EV market, you will know that the argument that Chinese cars are cheap and have taken the world by storm due to subsidies does not hold water," the researcher said.

Tang noted that while the United States and Europe are slowing down the pace of electrification, they aim to protect their industries by accusing China of overcapacity and imposing various barriers. He emphasized that protectionism also has disadvantages for industries, as it can delay technological evolution.

Looking to the future, Tang expressed confidence in Chinese companies' ability to evolve from steering wheels to touchscreens through a combination of product quality and innovation. "In the next 5 to 10 years, Chinese cars could revolutionize auto consumption culture and become iconic products akin to Apple's iPhone," the researcher envisioned. Enditem

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