On March 25, Fidelity International pointed out that in order for the world to successfully transition to clean energy, China is needed. China is the leading producer of approximately 20 key transformation materials needed for clean zero-emission technologies such as wind energy, solar energy, electric vehicles, and batteries. Effectively managing overseas operations for Chinese mining companies while contributing to the local economy, society, and environment has always been a key area of focus. Fidelity International analyst and fund manager James Richards stated that we have 10 to 15 years to replace the 200-year-old thermal energy technology. Many alternative technologies have a higher commodity intensity than currently, requiring a staggering scale and variety of affected raw materials. China has always been dominant in the processing of these commodities. While Western companies are cutting capital expenditures due to shareholder concerns about returns, Chinese enterprises are striving to promote growth in resources such as copper, lithium, and nickel. He added that China entered this market earlier than other countries globally, and now other countries are catching up. China is leading in raw material production and transitioning to a sustainable low-carbon economy. The adoption rate of electric vehicles in China is close to 40%, compared to only 10% three years ago. The pace of promoting clean energy in China may be faster, with domestic wind and solar power installed capacity reaching 1000 gigawatts (GW), and progress is expected to help achieve the target of 1200 GW by 2030 or earlier. With China advancing rapidly and other regions accelerating their transformation, global demand for transformation materials will continue to soar. James Richards pointed out that state-owned enterprises play a huge role in economic transformation, especially electricity companies with advantages in fundraising, which help them promote clean energy more actively. With these favorable conditions, China can invest in building its own grid. China has plans for 11 ultra-high-voltage power grid lines to be completed next year to alleviate the bottleneck issues caused by the rise of renewable energy. This may lead to a significant increase in demand for related raw materials such as copper and aluminum in the near future. Although the global demand for transformation materials is expected to continue to grow, these materials, like other commodities, are susceptible to cyclical factors. China's dominant position gives it significant price influence. For example, at the end of 2022, there was a shortage of key transformation materials such as nickel and lithium, leading to soaring prices. Now, oversupply has pushed prices down. Fidelity International analyst and fund manager Karen Zhou explained that China's developed lithium resources are insufficient to meet demand, prompting many Chinese companies to look overseas, especially in Africa. For investors, the experience gained is that while the prices of transformation materials may experience short-term corrections, the long-term growth prospects for materials like lithium, cobalt, nickel, and aluminum remain strong. Of course, the modern investment landscape not only focuses on profits but also places a high emphasis on environmental and social risks in mining and mineral sectors. Fidelity International analyst Binyu Zhao pointed out that companies are increasingly willing to engage and fully utilize the opportunity to understand global ESG trends. Therefore, the perception that Chinese mining companies have not made progress is largely a misunderstanding and deviates from reality. She further emphasized that how Chinese mining companies effectively manage their overseas operations while contributing to the local economy, society, and environment remains a key area of focus.