China's Overseas Clean Tech Investments Surge 80% Since 2022

What's Happening?

China has significantly increased its overseas investments in clean technology manufacturing, with a reported surge of 80% since 2022. According to a report by Net Zero Industrial Policy, Chinese firms have committed at least $227 billion to green manufacturing projects, including battery materials, electric vehicles, wind energy, and green hydrogen. The investments are strategically distributed across regions such as ASEAN, the Middle East, North Africa, Central Asia, and the Caucasus. This expansion is driven by China's aim to access host country markets, raw materials, and third-country markets, integrating these regions into China-centric supply chains.

Why It's Important?

China's aggressive investment in clean technology abroad highlights its commitment to leading the global transition to renewable energy. This surge in investment positions China as a dominant player in the clean tech sector, potentially influencing global supply chains and market dynamics. The strategic distribution of investments allows China to secure critical resources and expand its technological reach, challenging U.S. and European leadership in green technology. The scale of investment, comparable to the Marshall Plan, underscores China's ambition to reshape global energy markets and establish itself as a key supplier of clean tech solutions.

What's Next?

The report suggests that China's clean tech investments may plateau in 2025 as firms manage existing megaprojects and navigate geopolitical risks. Companies are adopting light-asset strategies, such as technology licensing and contract manufacturing, to maintain market access without heavy fixed-asset investments. This approach could further expand China's technological influence while mitigating investment risks. The evolving geopolitical landscape may impact China's investment strategies, with potential implications for global clean tech competition and collaboration.