Chinese companies poured about USD$80 billion into overseas clean technology projects over the past year as they sought new markets to ease a deep supply glut, according to new research from Australian group Climate Energy Finance (CEF).
Released on Sunday, the report said these investments lifted China’s total foreign spending on green tech to more than USD$180 billion since early 2023.
CEF said Chinese firms dominate global supply chains for solar panels, batteries, and critical minerals. They expanded abroad because domestic output far exceeded demand.
Caroline Wang, the report’s author, said China faces a structural imbalance between production and consumption. She noted that Chinese firms now depend on foreign markets to absorb excess solar and battery capacity.
Many governments deepened clean-energy cooperation with China after former U.S. President Donald Trump imposed new tariffs. Countries sought alternative suppliers and new industrial partners. Researchers at the Net Zero Industrial Policy Lab at Johns Hopkins University reported that about 75 per cent of China’s low-carbon investment flowed into Asia, the Middle East, Africa, and Latin America.
Southeast Asia remained the top destination for Chinese cleantech manufacturing. Chinese firms slowed new solar panel factory plans there because of U.S. trade measures. However, they expanded projects in renewable power, electric vehicles, and battery production. The Middle East and North Africa drew the fastest-growing wave of investment as governments pursued strategies to reduce dependence on oil.
Chinese firms increasingly backed large projects that link upstream processing with downstream manufacturing. CEF said these integrated ventures allowed companies to control more of the supply chain and cut costs.
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Green tech market could reach USD$1.84T by 2030
Among the largest new announcements, Longi Green Energy committed USD$8.28 billion to a green hydrogen venture in Nigeria. Meanwhile, CATL advanced plans for a USD$6 billion battery plant in Indonesia.
Wang said emerging economies see a chance to join a fast-moving technological shift. She added that countries want to avoid falling behind if they fail to secure roles in clean-energy supply chains. She noted that China currently leads global innovation in several green-tech fields, which draws governments eager for new industrial footholds.
The global clean-technology market continues to expand as demand accelerates worldwide, and analysts now value it at about USD$916.2 billion, according to marketing firm Grand View Research.
Researchers said the sector could reach roughly USD$1.84 trillion by 2030 as investment widens. Additionally, the International Renewable Energy Agency reported that renewable-energy investment alone climbed to about USD$807 billion in 2024.
The Economic Times further noted that mass-manufactured clean-energy technologies such as solar panels, batteries, wind turbines, heat pumps, and electrolysers could collectively exceed USD$2–2.5 trillion by 2035. Many governments continue to channel money into these technologies to secure supply chains. However, industry analysts warn that global competition is intensifying. Also, they said nations that delay investment risk losing ground in the next phase of clean-energy manufacturing.
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