What's Happening?
Chinese clean-tech companies have pledged over $210 billion in foreign investments since 2022 to expand their supply chains and capture new markets globally. Major firms like CATL, BYD, and Trina Solar
are investing in overseas factories across more than 50 countries. These efforts are part of China's strategy to promote clean energy and curb global carbon emissions. Chinese exports of clean-energy technologies in 2024 alone reduced global emissions outside of China by 1%. The initiative includes projects like the Africa Solar Belt, which aims to provide reliable electricity to African households through solar power.
Why It's Important?
China's investments in clean technology are reshaping the global energy landscape, making clean energy more affordable and accessible worldwide. This is crucial for developing economies that face high costs of green technologies. By driving down costs and increasing availability, China is supporting the transition towards carbon neutrality in multiple regions. The expansion of clean-tech supply chains also positions China as a key player in the global green transition, influencing energy policies and market dynamics internationally.
What's Next?
Chinese green technology firms are expected to continue ramping up overseas investments, integrating into regional green industrial ecosystems. This includes developing large-scale projects like green hydrogen production in Central Asia. However, the rise of green trade faces challenges from growing protectionism, which could limit access to green technologies for developing countries. Experts call for expanded international cooperation and technical exchanges to overcome these barriers and ensure sustainable development goals are met.
