In China, green means go
The Chinese government has kicked the country’s energy transition into high gear, but the groundwork began more than 30 years ago. Codified in the 14th Five-Year Plan, which is the country’s policy roadmap, the leadership strengthened its commitment to environmental protection and the development of green technology. However, it was already in the late 90s that Chinese companies began manufacturing solar panels with government support, but without any certainty about the future development of the industry. Ultimately, Chinese solar manufacturers became global industry leaders.Now that China, by its own admission, has entered a new era where economic growth is driven by innovation and high-tech development, the government also strives for leadership in emerging green technologies. Technologies including energy storage, green energy, and clean fuels received significant monetary and regulatory support from Beijing. As a result, Chinese enterprises dominate the wind and solar industry and are at the forefront of battery technology and electric vehicle manufacturing.
Clean air, clean tech, dirty business: a global fight for green tech leadership
While China’s industrial policy has ruffled some feathers in competing economies, it can be beneficial for developing countries and the climate overall. Export data showed that China became the world’s largest exporter of cars in early 2024 after many Chinese EV brands increased sales overseas, making this another domestic threat to U.S. and Europe. The latter’s accusation is that China would subsidize its products and dump them on the global market, undercutting global competitors: a claim that Beijing refutes strongly by accusing them of unfair competition in turn.However, transitioning to green technologies is in everyone’s interest if not a necessity in the face of global climate change. For any country that has no domestic industry to protect or support, access to cheap and high-quality solar panels, batteries, and hydrogen production is crucial. Greentech application including renewable energy and electric vehicles act as catalysts for developing countries, helping build a sustainable economy from the ground up. Whether the U.S. and Europe introduce trade barriers and to what extent other markets can absorb China’s production volume will be decisive for the future of China’s green tech industry.
