Report: China invested $80 billion in cleantech overseas last year
According to a recent report from the Australian research group Climate Energy Finance, Chinese companies have invested $80 billion overseas in clean technologies to help absorb an oversupply.
According to the report published on Sunday, many countries have also intensified their cleantech collaboration with China as a result of U.S. president Donald Trump's new tariffs. This brings China's overseas direct investment in green technology up to more than 180 billion dollars since 2023.
Chinese companies dominate the supply chains of clean technologies, such as solar panels and batteries. Chinese investment in clean energy infrastructure creates markets for these products.
Caroline Wang, CEF China engagement leader and report author, said that China has a glut of green technology like solar panels and battery because there is a structural mismatch between supply and demand. They need overseas markets to absorb these products.
RISE OF MISSING THE MARKETS OPPORTUNITIES
Wang added that this also offers opportunities to emerging economies who wish to reduce their dependency on fossil fuel imports.
According to research from Johns Hopkins University's Net Zero Industrial Policy Lab, 75% of China’s low-carbon direct foreign investment is made in Asia, Africa, the Middle East and Latin America.
The CEF report revealed that Southeast Asia was the most popular destination for Chinese investments in cleantech manufacturing. The U.S. Tariffs on solar products led to fewer new investments in the manufacturing of solar panels. However, more Chinese investments were made into renewable energy, electric vehicles, and batteries.
Investment in the Middle East and North Africa has grown rapidly, largely due to national diversification strategies away from oil.
CEF has found that Chinese companies are increasingly integrating their upstream and downstream supply chains into large-scale projects.
Longi Green Energy, a solar company in Nigeria, announced an $8.28-billion green hydrogen project. CATL in Indonesia is also building a $6-billion battery factory.
Wang added that "not wanting the emerging economies to miss this technological revolution" is another incentive.
"China is leading the world in technology and innovation. If you don't enter the supply chain fast, you may miss out on innovative opportunities." (Reporting Colleen Lewis; Editing Aidan Lewis).
(source: Reuters)
