China’s clear know-how funding abroad has reached roughly $80bn over the previous yr, in keeping with a report by Australian analysis group Local weather Power Finance (CEF).
In accordance with the report, Chinese language firms have been searching for new markets to deal with a surplus in provide, leading to a major improve in overseas direct funding in inexperienced know-how since early 2023.
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The CEF report famous that for the reason that begin of 2023, China’s complete abroad direct funding in clear know-how has surpassed $180bn.
This growth has been partly pushed by nations searching for to strengthen clear tech cooperation with China, significantly following tariffs imposed by US President Donald Trump.
Chinese language firms have established a robust presence in provide chains for crucial minerals processing, photo voltaic panels and batteries.
Chinese language overseas funding in clear vitality infrastructure can be facilitating the creation of latest markets for these merchandise.
CEF China engagement lead and report creator Caroline Wang famous that this development provides alternatives for rising economies aiming to lower their reliance on imported fossil fuels.
Wang mentioned: “China’s received a provide glut in relation to inexperienced know-how like photo voltaic panels and batteries, due to a structural supply-demand mismatch, in order that they want abroad markets to soak up their merchandise,” in keeping with Reuters.
In accordance with the report, South East Asia continues to be the first vacation spot for Chinese language clear know-how manufacturing investments.
Whereas new photo voltaic manufacturing investments within the area have declined on account of US tariffs, Chinese language funding in electrical autos, renewable energy and batteries has elevated.
On the similar time, the Center East and North Africa turned probably the most quickly rising area for Chinese language clear know-how funding, led by Egypt, Morocco, Oman and Saudi Arabia.
Collectively, these nations secured roughly $7bn in introduced funding. These tasks spotlight how Gulf and north African nations are pursuing financial diversification by growing sectors past oil.
The report discovered that Chinese language firms are more and more favouring large-scale tasks that combine each upstream and downstream provide chains.
Notable current tasks embody an $8.27bn inexperienced hydrogen challenge in Nigeria introduced by Longi Inexperienced Power and a $6bn battery manufacturing facility beneath development by CATL in Indonesia.
The report famous that the October 2024–25 interval marked the consolidation of China’s place as a “dominant world investor in clean-energy manufacturing and infrastructure”.
Throughout this time, almost $80bn in new tasks have been disclosed throughout 26 nations, primarily pushed by personal firms.
In accordance with the report, Chinese language firms view the commerce warfare initiated by US President Trump in March 2025 as having elevated uncertainty and have responded by prioritising “long-term threat mitigation via market diversification, with a give attention to nations not hit by Trump’s tariffs that provide beneficial funding environments”.
The Chinese language Authorities has inspired firms to collaborate with native firms in Belt and Street Initiative (BRI) nations.
The report learn: “The clean-tech financial system represents a flourishing type of South-South cooperation, the place nationwide growth objectives meet China’s techno-industrial would possibly.
“Whereas the US sees China’s rise as a risk, many growing nations are impressed by its success and purpose to emulate it.”
In accordance with statistics from the Chinese language Ministry of Commerce “Going World” Service Platform, Chinese language enterprises made 215bn yuan in non-financial direct funding in BRI nations from January to September 2025, a 24.7% year-on-year improve.
In the meantime, following Trump’s election, the US Administration has decreased its local weather and clear vitality commitments, rising assist for fossil fuels.
Most clean-energy manufacturing tax credit beneath the Inflation Discount Act (IRA) have been suspended or decreased, and new renewable vitality funding within the US fell by 36% within the first half of this yr.
Many world firms, together with First Photo voltaic and Enphase, have paused or relocated tasks to South East Asia and the EU, the report famous.
The US President has dedicated to rising oil and gasoline drilling, exiting the Paris Local weather Settlement and reversing environmental insurance policies established by earlier administrations.
“Drill, child, drill” was Trump’s marketing campaign pledge, and the administration has proposed widening the manufacturing of fossil fuels.
The Trump administration has proposed opening federal waters close to the coasts of Alaska, Florida and California for oil and gasoline drilling, together with areas that haven’t beforehand been explored.
Whereas different Western nations are taking steps to scale back reliance on fossil fuels, the US is shifting in the wrong way.
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