China’s cleantech industry is well-positioned to weather these decoupling efforts, thanks to its strong foothold in emerging and developing markets. The Global South’s increasing demand for solar, wind, and EV technology is driving growth in China’s exports, offsetting any potential losses from developed markets.
As the world transitions to a cleaner energy future, China’s role as a leading supplier of cleantech products to the Global South will only continue to grow. The country’s investments in clean energy lending and cooperation with countries in need of sustainable solutions further solidify its position as a key player in the global clean energy market.
While efforts to diversify or decouple supply chains from China may impact the country’s cleantech industry in some markets, the overall outlook remains positive. China’s dominance in clean energy manufacturing, coupled with the growing demand from emerging and developing countries, ensures that the country will remain a major player in the global cleantech industry for years to come.
With a focus on innovation, sustainability, and collaboration, China’s cleantech industry is poised to continue driving economic growth and environmental progress on a global scale.
The Future of Clean Energy: Why China’s Dominance is Not a Threat
The bankruptcy of Swedish battery maker Northvolt, dubbed “Europe’s best shot at a homegrown electric-vehicle battery champion”, made it clear that the European Union needs to reevaluate its industrial and supply-chain policies to reduce reliance on cleantech imports from China. While the EU may be considering strategies to bolster its own cleantech sector, it cannot afford to slow down clean energy deployment in the interim.
China, with its massive domestic cleantech market, has effectively ringfenced its industry to exclude foreign imports. Rather than relying solely on tariffs, China has focused on supporting and subsidizing its domestic cleantech sector, driving down prices and accelerating global adoption of clean energy technologies.
China’s Self-Interest in the Global Energy Transition
Despite potential challenges from the Trump administration, China’s clean energy industry remains resilient. The country’s economic reliance on clean energy technology and exports incentivizes it to ensure the global energy transition continues to progress. This commitment is evident in China’s bilateral lending, diplomacy efforts, and potential for more proactive involvement in multilateral climate negotiations.
Lauri Myllyvirta, senior fellow at Asia Society Policy Institute, China Climate Hub, and lead analyst of Centre for Research on Energy and Clean Air, emphasizes the importance of China’s role in the global energy transition. Hubert Thieriot, data lead at the Centre for Research on Energy and Clean Air, also contributes valuable insights on the topic.
This article, originally published by Dialogue Earth, highlights the symbiotic relationship between China’s clean energy industry and the global energy transition. For more information, visit the original article here.